Tesla (TSLA) is planning to sell its China-made Model 3 and Model Y electric vehicles in Canada.
The planned sales in Canada will mark Tesla’s first shipments to North America of vehicles made at its factory in Shanghai, China.
Tesla’s China-produced vehicles will be shipped to British Columbia and qualify for Canadian federal government incentives on electric vehicles of $5,000.
The China-made version of the Model Y electric vehicle retails for $61,990 in Canada. That’s 22% more than the equivalent vehicle costs in China before incentives are applied to the price.
Tesla's move to export vehicles to Canada from its Shanghai plant could help the company keep vehicles made at its plants in California and Texas for sale in the U.S., where they qualify for potential tax incentives of up to $7,500 U.S. under the Biden administration’s subsidy program.
For electric vehicles to qualify for government incentives in the U.S. they must be manufactured in America. Canada’s government does not have similar requirements.
It is not clear how many China-made Tesla vehicles will ultimately be made available for sale in Canada. Tesla last month said that it plans to offer a new, cheaper version of its Model Y electric vehicle in Canada that uses rear-wheel drive.
Tesla’s stock has declined 16% over the last year and now trades at $188.87 U.S. per share.
