Canadian Price Increase Imminent

[rypalmer]

Are you talking about the centre display?

Yep. Same system-on-a-chip as when they debuted the car in 2012. I'm willing to bet the X will debut with a newer chip, and that the S will also benefit from this upgrade.

No price movement yet. Any guesses when we'll see a change?

My car, as configured, is $94,500, equivalent to $72,945 USD. The same configuration on the US site is currently $81,500 USD. The price Canadians pay includes an extra 6.1% duty as well.

 

[Canuck]

The price Canadians pay includes an extra 6.1% duty as well.

Once the giga factory is producing the batteries, rather than being manufactured in Japan, this 6.1% duty will be gone since the vehicle will qualify for no duties under NAFTA. I doubt we'll see a price decrease though.

 

[Paul Carter]

Once the giga factory is producing the batteries, rather than being manufactured in Japan, this 6.1% duty will be gone since the vehicle will qualify for no duties under NAFTA. I doubt we'll see a price decrease though.

Why not. Tesla said many times its based on the US price. I would expect a 6.1% reduction to be a great win for them, more affordable, more sales. Crazy not to pass it along. (Currency fluctuations is another matter).

 

[Jgdixon]

Guys I was just told by a Tesla employee that there will be an approximate increase of 7% on August 10.
Keep in mind delivery can be deferred until January 2016.

 

[rypalmer]

Guys I was just told by a Tesla employee that there will be an approximate increase of 7% on August 10.
Keep in mind delivery can be deferred until January 2016.

Can delivery not be deferred for up to 1 year? Not sure where I read this.

 

[NeedWatts]

I was previously informed that it was "up to 6 months".

 

[wayner]

Why not. Tesla said many times its based on the US price. I would expect a 6.1% reduction to be a great win for them, more affordable, more sales. Crazy not to pass it along. (Currency fluctuations is another matter).

But isn't the price in Canada currently cheaper than in the US, even with the duty? Therefore they are eating the cost of the duty in the short term. I don't doubt that they want to increase their Gross Profit Margin on cars in Canada.

 

[rypalmer]

But isn't the price in Canada currently cheaper than in the US, even with the duty? Therefore they are eating the cost of the duty in the short term. I don't doubt that they want to increase their Gross Profit Margin on cars in Canada.

By my math, prices could stand to increase by about 20% to account for the CAD worth 0.77 USD.

 

[Paul Carter]

But isn't the price in Canada currently cheaper than in the US, even with the duty? Therefore they are eating the cost of the duty in the short term. I don't doubt that they want to increase their Gross Profit Margin on cars in Canada.

They adjust from time to time. But to main goal is to price it based on USD + foreign country recovery cost. Consider it a big bargin right now that'll likely be gone soon.

 

[sitter_k]

By my math, prices could stand to increase by about 20% to account for the CAD worth 0.77 USD.

Future CPO prices will def. Get a boost with a 20 percent increase for new cars.

 

[RiverBrick]

Once the giga factory is producing the batteries, rather than being manufactured in Japan, this 6.1% duty will be gone since the vehicle will qualify for no duties under NAFTA. I doubt we'll see a price decrease though.

I thought the Giga-factory was just for Model 3 and that S and X batteries will still be imported into N.A.

 

[PoweredByRain]

I thought the Giga-factory was just for Model 3 and that S and X batteries will still be imported into N.A.

Based on what? I can't think why it would make sense to do that.

The Giga-factory is almost a pre-requisite for the Model 3, as lower costs for batteries are a big part of what's needed to make the Model 3 a reality. But that lower cost for batteries is something they want for the Model S and X as well. Panasonic is invested in the Giga-factory as a partner.

From almost exactly one year ago: Panasonic and Tesla Sign Agreement for the Gigafactory | Tesla Motors Canada

 

[mknox]

Why not. Tesla said many times its based on the US price. I would expect a 6.1% reduction to be a great win for them, more affordable, more sales. Crazy not to pass it along. (Currency fluctuations is another matter).

As long as Tesla is honest about it. Remember when the government removed the Federal excise tax (which was hidden in the retail price) and replaced it with the GST? Most, if not all companies just left the retail price the same and added the GST at the point of sale.

 

[Paul Carter]

As long as Tesla is honest about it. Remember when the government removed the Federal excise tax (which was hidden in the retail price) and replaced it with the GST? Most, if not all companies just left the retail price the same and added the GST at the point of sale.

I remember it quite well. Hardly anything dropped By 6.5%. But price increases did cease on a lot of things for a long time as companies adjusted to having input tax credits. In any case it does seem Teslsa is trying to level pricing in all markets.

 

[RiverBrick]

Based on what? I can't think why it would make sense to do that.

...

From almost exactly one year ago: Panasonic and Tesla Sign Agreement for the Gigafactory | Tesla Motors Canada

Based on huge Model 3 production consuming all the batteries produced by the Gigafactory. It even says in the link that TM will continue to purchase batteries from Panasonic overseas after the Gigafactory opens.

 

[Kenypowa]

Based on huge Model 3 production consuming all the batteries produced by the Gigafactory. It even says in the link that TM will continue to purchase batteries from Panasonic overseas after the Gigafactory opens.

Of course Model 3 will consume most batteries (as it is for the mass market) but that doesn't exclude Gigafactory from making batteries for Model S or 3. Besides Model 3 will be assembled alongside S and X in Fremont.

 

[wayner]

Even if they are still importing from overseas wouldn't it make a ton of sense to build Canada cars with the US made batteries. Or else just lump all of the batteries in together and calculate the average North American content that will (hopefully) now be under the tariff threshold.

 

[sitter_k]

Even if they are still importing from overseas wouldn't it make a ton of sense to build Canada cars with the US made batteries. Or else just lump all of the batteries in together and calculate the average North American content that will (hopefully) now be under the tariff threshold.

I think Tesla will capture the 6% in profit rather than pass along the savings.

 

[Ladoe00]

Guys I was just told by a Tesla employee that there will be an approximate increase of 7% on August 10.

I tried to get that information from Tesla Store in Montreal and they said there will be a price increase in the next week or so, but he didn't know how much it would be and when exactly. If your info is right, that's valuable information for me since I am in the process of canceling my X reservation and buying a 85D instead.

 

[wayner]

I think Tesla will capture the 6% in profit rather than pass along the savings.

Which isn't unreasonable if they have been "eating" this cost since they started selling cars in Canada as the Canadian price converted to USD is much less than the current US price.