Page 1 of 35 1234511 ... LastLast
Results 1 to 10 of 350

Thread: Canadian Pricing and Delivery

  1. #1
    Roadster 919, S 2006 Doug_G's Avatar
    Join Date
    Apr 2010
    Location
    Ottawa, Canada
    Posts
    12,551
    Blog Entries
    1

    Canadian Pricing and Delivery

    As mnx pointed out on the prototype tour thread, Canadian pricing is due out soon. I've heard that they are indeed working on it.

    I'm concerned that Tesla is going to overprice the car. A fellow I know was told they were thinking of averaging the last 5 years exchange rate. But that would be highly biased as it includes the turbulence around the 2008 financial crisis. For the last couple of years the dollar has been within two cents of parity, and we're often above parity. The Canadian buck is now considered a "petrodollar".

    I can also point out that Tesla was excessively conservative on the exchange rate for my Roadster. They priced in a possible worsening exchange rate, and it went entirely the other way.

    Canadians don't like getting screwed on the exchange rate, and overpricing the Model S could cause a backlash. Surely if the margins on this car are as good as planned they can afford to take a tiny risk on exchange fluctuations.

    I'm also wondering how soon the cars will launch here. They said "three months after the US introduction", which makes it early October? I'd sure want to have the car before the snow flies! But I was also noticing that the owner of US Sig Special #114 said on these forums that he was told his delivery would be mid-August. This suggests that the early production rate will be at best 200 cars a month.

  2. #2
    Junior Member
    Join Date
    Jan 2012
    Location
    Manitoba Canada
    Posts
    35
    I share your concern re. Canadian pricing. There would be no reason (other than gouging) for CDN pricing to be higher than US pricing, given the strength of our dollar. The S is a stretch for us, regarding price. I'd hate to see TM boost the Canadian price beyond the US price. I'd asked a sales rep about the Canadian price for a 370 km pack several months ago. His response was that he estimated it would cost in the mid sixty range. Ignoring options, this would be very comparable to US pricing, unless he was factoring in the UF Fed $7500 credit (?).

    If Tesla is concerned about the risk of currency fluctuation, is it an option for Canadians to purchase with US funds for the US price?

    Rob

  3. #3
    CDN P285
    Join Date
    Mar 2012
    Location
    Montreal, Canada
    Posts
    693
    Quote Originally Posted by Doug_G View Post
    Canadians don't like getting screwed on the exchange rate, and overpricing the Model S could cause a backlash. Surely if the margins on this car are as good as planned they can afford to take a tiny risk on exchange fluctuations.
    +1 to that.

    The US / Canada price differences on cars have traditionally been "explained" by (1) the relative strength of the currencies, which are not currently an issue, as pointed out by Doug, and (2) the radically different market sizes between the two countries.

    Because of the latter, I was able to import a new Toyota Sienna in 2008 for a whopping 25% saving on the final price of the vehicle, compared to what I would have paid at a local dealership. The potential savings only increase with more luxurious vehicles, but since you have to purchase the car (i.e. no leasing), not everyone can afford the lump-sum expense.

    Since then consumer backlash about perceived gouging in Canada forced most manufacturers to adjust their prices to be more comparable to those in the US, especially for mainstream vehicles (but even Porsche added rebates!). The differences are now generally smaller, but still persist.

    The market for Tesla is much smaller, and I agree that any price substantially greater than that in the US would be a major turn-off for many, including myself, especially when considering the much higher tax rates we have to contend with on such a purchase (current combined sales tax in Quebec are over 15%).

    This is one of the few things that would make me seriously think about cancelling my reservation.
    Last edited by Jeeps17; 2012-04-27 at 07:08 AM.

  4. #4
    MSP #4242, MX #648 mnx's Avatar
    Join Date
    May 2009
    Location
    Ancaster, Canada
    Posts
    2,043
    I'm going to be pissed if they hose us on exchange rates. I'm more than willing to pay in USD if they're concerned about currency fluctuations.

    If the Canadian price is much higher than the US price, I'll be downgrading my Sig reservation in a heartbeat to make up for the difference.

    Also agree with your comments on having the car before the snow flies.... If not, hopefully they can deliver it with a set of winter tires installed!

    (oh and btw thanks for starting a new thread Doug, I should know better.


    Quote Originally Posted by Doug_G View Post
    As mnx pointed out on the prototype tour thread, Canadian pricing is due out soon. I've heard that they are indeed working on it.

    I'm concerned that Tesla is going to overprice the car. A fellow I know was told they were thinking of averaging the last 5 years exchange rate. But that would be highly biased as it includes the turbulence around the 2008 financial crisis. For the last couple of years the dollar has been within two cents of parity, and we're often above parity. The Canadian buck is now considered a "petrodollar".

    I can also point out that Tesla was excessively conservative on the exchange rate for my Roadster. They priced in a possible worsening exchange rate, and it went entirely the other way.

    Canadians don't like getting screwed on the exchange rate, and overpricing the Model S could cause a backlash. Surely if the margins on this car are as good as planned they can afford to take a tiny risk on exchange fluctuations.

    I'm also wondering how soon the cars will launch here. They said "three months after the US introduction", which makes it early October? I'd sure want to have the car before the snow flies! But I was also noticing that the owner of US Sig Special #114 said on these forums that he was told his delivery would be mid-August. This suggests that the early production rate will be at best 200 cars a month.
    2013 Tesla Model S P85: 12.417 @ 111.570 MPH

    Performance 85kWh, custom 19" Forgestar c5fv wheels, white/black/CF, pano,sound,tech,twin chargers!

  5. #5
    Happy Model S Owner
    Join Date
    Apr 2011
    Location
    Ithaca, NY, USA
    Posts
    1,680
    Quote Originally Posted by Doug_G View Post
    As mnx pointed out on the prototype tour thread, Canadian pricing is due out soon. I've heard that they are indeed working on it.

    I'm concerned that Tesla is going to overprice the car.
    A very valid concern. Tesla's been making a habit of overpricing in certain ways. I understand that this is understandable financial conservatism from a startup, but it's dangerous.

    What I'd suggest Tesla do is to hedge against currency fluctuations: I believe Tesla has a planned number of Canadian models to be produced per year, and I assume they can sell them all. So sell Canadian dollar futures and buy American for the appropriate amount of money. They'll have to incorporate a small premium for the cost of the hedging, but that shouldn't be large. They only lose if they fail to sell the cars.

  6. #6
    MSP #4242, MX #648 mnx's Avatar
    Join Date
    May 2009
    Location
    Ancaster, Canada
    Posts
    2,043
    Quote Originally Posted by neroden View Post
    A very valid concern. Tesla's been making a habit of overpricing in certain ways. I understand that this is understandable financial conservatism from a startup, but it's dangerous.

    What I'd suggest Tesla do is to hedge against currency fluctuations: I believe Tesla has a planned number of Canadian models to be produced per year, and I assume they can sell them all. So sell Canadian dollar futures and buy American for the appropriate amount of money. They'll have to incorporate a small premium for the cost of the hedging, but that shouldn't be large. They only lose if they fail to sell the cars.
    Excellent suggestion.

    They many not even lose on the currency forward (hedge) if they fail to sell cars, it could work out in their favour...
    2013 Tesla Model S P85: 12.417 @ 111.570 MPH

    Performance 85kWh, custom 19" Forgestar c5fv wheels, white/black/CF, pano,sound,tech,twin chargers!

  7. #7
    CDN P#40
    Join Date
    Dec 2011
    Location
    Montréal, Québec
    Posts
    254
    Quote Originally Posted by Jeeps17 View Post
    +1 to that.

    The market for Tesla is much smaller, and I agree that any price substantially greater than that in the US would be a major turn-off for many, including myself, especially when considering the much higher tax rates we have to contend with on such a purchase (current combined sales tax in Quebec are over 15%).

    This is one of the few things that would make me seriously think about cancelling my reservation.
    Totally agree. Could be a deal breaker for me too!

  8. #8
    Senior Member hcsharp's Avatar
    Join Date
    Jun 2011
    Location
    Vermont
    Posts
    1,658
    Quote Originally Posted by neroden View Post
    ...What I'd suggest Tesla do is to hedge against currency fluctuations: I believe Tesla has a planned number of Canadian models to be produced per year, and I assume they can sell them all. So sell Canadian dollar futures and buy American for the appropriate amount of money. They'll have to incorporate a small premium for the cost of the hedging, but that shouldn't be large. They only lose if they fail to sell the cars.
    +1. I would think this would be standard practice rather than overpricing.

    About 10 or 15 years ago a friend of mine loaned me his Chevy Suburban for a day. I noticed the speedometer was in km and asked why. He said he saved almost $10,000 by buying the car in Ontario and bringing it to the States. Neither of us could think of a good reason why the car was so much cheaper in Canada. He said other dealers in Ontario were charging about the same price. Apparently things have changed.

  9. #9
    Member
    Join Date
    Mar 2011
    Location
    Laval, Quebec
    Posts
    721
    Quote Originally Posted by hcsharp View Post
    About 10 or 15 years ago a friend of mine loaned me his Chevy Suburban for a day. I noticed the speedometer was in km and asked why. He said he saved almost $10,000 by buying the car in Ontario and bringing it to the States. Neither of us could think of a good reason why the car was so much cheaper in Canada. He said other dealers in Ontario were charging about the same price. Apparently things have changed.
    Well one can always hope that they return to the good old days

  10. #10
    Junior Member
    Join Date
    Jan 2012
    Posts
    10
    I'm a Model X reservation holder -- if the S comes out overpriced I will probably cancel my reservation. Man it would be nice if a company just decided to actually appeal to the Canadian market and priced it fairly. Hell make it lower (not saying it has to be 40% lower -- just a couple of points) and you could probably get a whole ton of publicity purely out of the idea of being pretty much the one company in the US that doesn't feel the need to screw us over. We've had two-three years of par or above now I think -- it's not a huge risk and would create a lot of goodwill. I'm in a province with no rebates so if they over-price (plus add in higher Canadian taxes) I could easily be looking at paying $15k-$20k more than the publicized (with rebate) price (and the actual price I would pay if I lived in the US). That's a pretty big pill to swallow. Oh well ... fingers crossed.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Model S - Canadian pricing
    By mlascano in forum Model S: Ordering, Production, Delivery
    Replies: 33
    Last Post: 2013-07-22, 09:36 PM
  2. Canadian Model S Info
    By clea in forum Canada
    Replies: 7
    Last Post: 2012-12-05, 12:45 PM
  3. Canadian Electrical Code
    By KBF in forum Canada
    Replies: 8
    Last Post: 2012-07-11, 06:35 PM
  4. Canadian Roadsters
    By Doug_G in forum Roadster
    Replies: 3
    Last Post: 2012-01-31, 12:15 PM
  5. Canadian EV News
    By Doug_G in forum News
    Replies: 0
    Last Post: 2010-09-16, 03:09 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •