In a notice posted on its website, Transport Canada said the popular car was no longer eligible for the federal $ 5,000 electric car rebate program for its 2021 and 2022 models.
Only Tesla 3 models that were ordered before November 23 will still see their price discount reduced under what the government calls its iZEV program.
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Transport Canada said Tesla announced a price increase for its standard lineup and standard lineup plus models that went into effect on Nov. 23, which now exceeds the eligibility criteria for the iZEV program.
“As a result, these vehicle models are no longer eligible for the iZEV program incentives,” the department said.
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The automaker’s website now lists the base price of the Model 3 at $ 59,990, well above the eligible price of $ 45,000 to get the $ 5,000 rebate. High-end versions of the same model can cost up to $ 55,000 and still be eligible.
In 2019, the company lowered the base price of the Model 3 to just under $ 45,000 to make it eligible for the program, which began in May of that year.
Since then, nearly 35,000 Teslas have qualified, with the company receiving $ 173.6 million.
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This puts Tesla in the lead as the most popular electric car in Canada. The number two electric car, the Toyota Prius Prime plug-in hybrid, which qualifies for a rebate of $ 2,500, has seen 14,822 vehicles get a rebate since May 2019, for a total of $ 36.9 million.
The Hyundai Kona is the second most popular fully electric vehicle and is also eligible for the full $ 5,000 refund. The company submitted 12,890 cars for reimbursement and received $ 64.4 million.
Joanna Kyriazis, senior policy advisor at Clean Energy Canada, said the Tesla 3 has proven to be very popular, but she’s not worried that its withdrawal from the iZEV program will negatively impact overall sales of electric cars.
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“The federal rebate program has been very popular and there are many other models of electric vehicles that could qualify for the federal rebate,” she said. “We just need a national mandate on zero emission vehicles in place to ensure that enough of these vehicles are available to Canadians across the country. “
Earlier this year, the federal Liberals said they intended to establish a mandate that by 2030 half of all new cars sold in Canada will be zero emissions and 100% by 2035 About 3.5% of new cars sold last year were ZEVs.
The Tesla 3s rose to the top of the popularity list in Canada before the federal incentive appeared. Launched in the spring of 2018, Teslas topped the sales list, selling nearly 5,000 cars in the first four months of the offering. The Nissan Leaf, in second place in the second and third quarters of 2018, sold around 3,800 units.