Canadian pricing out... i am in tears

Canadian pricing out... i am in tears

Canadian pricing is out:

$64,500for base 40kWh model, Model S with the 60 kWh battery pack and 85 kWh battery pack will start at $75,200 and $85,900 CAD respectively. Base will have heated seats and decor included.

I am floored, you can't imagine my deception level following that announcement. Truly have the impression of being screwed here. Huge mistake from Tesla.

GB is stating that they took a really straight forward approach: "Canadian base prices start with U.S. pricing, plus 6.1 percent for import duties and an additional 1.5 to 2 percent, depending upon the model, for incremental transportation costs and country specific business expenses. The total is then adjusted using the current mid-term currency exchange rate."

Sorry but I am very familiar with the matter and the 6.1% duty doesn't apply to cars built in the Canada-USA-Mexico as part of the Free-Trade-Agreement. Only applies to cars sold in the US for example coming from Japan. So it should have said 6.1% more margins..... And doing straigh math 65,400 - 57,400 is 14% more than the 57,400 US price. Unfair

Stopping here to dry my tears and calm down

Timo | 27. August 2012

Smaller and cheaper, not sure about lighter since it will use steel instead of aluminum. Even with "smaller" we are not talking about SmartforTwo, more like VW golf, so with long range battery it will still weight quite a bit more than "average" ICE car.

Vawlkus | 27. August 2012

I'm sure your decision will make OPEC very happy bortolo. It'll also speed up the process for the others in line for a Model S who disagree with your opinion AND your math.

RobertMontreal | 27. August 2012

Since George has said that the model S falls only slightly below the percentage needed for NAFTA certification, is there something we can do to try to get the government to accept the Tesla as NAFTA certified? It's a revolutionary automobile that should be encouraged by the government, not made more difficult to buy.

Do you think Tesla has done everything they can to waive the duty, or do you think they considered Canada a small market, so it wasn't worth their while?

kingkong | 27. August 2012

Unless I am really outdated. under the free trade agreement there is no duty to import cars manufatured in Mixeco, US or Canada.

George B as a Tesla escutive should be embrassed to make such a statement to scam Canadians 6.1%

kingkong | 27. August 2012

Unless Model S is not made in the US

stephen.kamichik | 27. August 2012

kingkong.......the cars must have 62.5% North American content to be duty exempt. The model S is 55% North American content.

olanmills | 27. August 2012

I'm sorry, but some of these comments are just crazy.

"I try to be a good person and simply cant believe something like this would happen to me, my wife and my new family."

This is a retail product that needs to be sold for a profit, not a promise made by a family member to you. Tesla doesn't owe you anything, except a refund, if that's what you want.

Even when I put down a deposit for a US reservation, the agreement said this:

"This Agreement does not constitute an agreement for the sale of a Model S and does not lock in pricing, a production slot, or an estimated delivery date. You are under no obligation to purchase a Model S from us, and we are under no obligation to supply you with a Model S or any other vehicle."

and there were other further statements in the agreement reiterating these facts, such as, "The purchase price for the Model S has not yet been determined," and more.

When the full US pricing was announced, it was also about $10,000 more than what I figured it would be for all of the options and such, and of course there were extra stipulations we that were revealed such as the prioritization of deliveries with Air Suspension or bigger batteries and such.

And then too, there were rants from people angered by Tesla's "betrayal'.

Dissappointment, frustration, shock? Understandable.

Anger? Righteousness? Silly. See -> video game fanboys

I'm sorry, I'm going to assume that you wrote your post when you were emotional, and but you must see now how silly it is to say things like "I try to be a good person," as if that entitles you to purchase a luxury car at some certain price that you find acceptable.

olanmills | 27. August 2012

The only way I see any of this anger justified is if you think that Tesla et al is actually trying to scam Canadian buyers to make an extra profit. If you seriously believe that, then you should definitely get a refund and also notify the authorities.

"George B as a Tesla escutive should be embrassed to make such a statement to scam Canadians 6.1%"

kingkong | 28. August 2012

As I undersatand there is no import duty when the cars are manufactured in North America(Mexico, US & Canada).

Timo | 28. August 2012

Problem with Model S is that battery pack. Batteries in that pack are made by Panasonic somewhere else even that it is assembled in US, and apparently that is enough for that to trigger import duty.

There is gblankenship message about that in page one in this thread.

kingkong | 31. August 2012

Stephen.Kamichi/Brian H

where is 62.5% from? I email Canadian Border Service; here is their reply(duty free if manufactured in the US or Mexico):

The importation of an admissible vehicle will occur at the first Canadian port of entry by presenting an original Title certificate and bill of sale.

Information on importing a vehicle from the United States into Canada is accessible from the Transport Canada Web at:

The Registrar of Imported Vehicles provides a useful guide to importing vehicles, which is available at:

Additional information on importing a vehicle into Canada is accessible from the publication Importing a Vehicle Into Canada, on the Canada Border Services Agency Web site at:

The North American Free Trade Agreement (NAFTA) has rendered vehicles manufactured in the United States or Mexico free of customs duties. If the vehicle was made in any other country, an additional duty of 6.1 % would also be applied. Any excise duties or taxes may also be applicable.

Please note the goods and services tax of 5.0% is calculated on the duty-paid value of the price you have paid for the goods converted into Canadian currency. Where applicable, the provincial sales tax (PST) will be paid to your province of residence at the time of licensing.

Ensure that the vehicle is absolutely free from any trace of soil or organic matter before it is imported into Canada, otherwise it may be refused entry at the importer's expense.

Should you require additional assistance with your inquiry, or for a more detailed inquiry of whether duty will apply to your specific vehicle, we recommend that you contact the Border Information Service (BIS). You can access the BIS line free of charge throughout Canada by calling 1-800-461-9999. If you are calling from outside Canada, you can access the BIS line by calling either 204-983-3500 or 506-636-5064 (long-distance charges will apply). If you call during regular business hours (8:00 a.m. to 4:00 p.m. Monday to Friday, except holidays), you can speak to an officer by pressing “0” after you have made a selection of one of the 4 menu options.

Thank you for contacting the Canada Border Services Agency.

stephen.kamichik | 01. September 2012

kingkong....I think the above is relevant only if as a private person you are importing a USED car. The manufacturer has to pay 6.1% duty if the NEW car has less than 62.5% North American content.

Theresa | 01. September 2012

kingkong, Rahter than continuing to complain about this please educate yourself by going to the link that HaroldS posted in this thread on August 22. If you read that it is VERY obvious that Tesla is required to pay the 6.1% duty.

lturcotte | 02. September 2012


would like to say that HaroldS is for the US version of the document

Here is a link the the Canadian docs

I can not find a mention of the 62.5% in Can. docs

would like to mention that under 8507.60,
"-Lithium-ion 8507.60.10 00 - - -For use as the primary source of electrical power for electrically-powered vehicles of subheading 8703.90". are duty free.

jerry3 | 02. September 2012


I think the way Lithium-ion 8507.60.10 00 would be interpreted is that it's for the batteries only. So to do that you would have to import the batteries separately and then install them. This might cost more than 6% depending upon the number of cars imported. Bear in mind that you would have to pay the assemblers whether cars were being imported or not.

Also, even if you did it that way, I'm not sure that the Model S would pass in that many of the expensive parts aren't made in North America: brakes (Italy), display (Asia), steering gear (Germany), air suspension (Germany).

lturcotte | 02. September 2012

I agree with you.
wanted to point there are difference between Can and US Nafta documents.

I think the only way to avoid import tariff, would be to ask the Gov. to change the rules on electric cars.

stephen.kamichik | 02. September 2012

Send emails to delete the 6.1% import duty to

pbrulott | 02. September 2012

Done Stephen. thanks.

Moreover, I will be getting the coordinates of somebody at Ministry of Trade to raise awareness.


toto_48313 | 03. September 2012

Do you have an email template to send to pm?

stephen.kamichik | 03. September 2012


Brian H | 03. September 2012
Jewsh | 03. September 2012

Thank you, Brian. I have sent my letter to the PM and explained as best I can what many of us feel is an unjust taxation.

Hopefully an exception for electric vehicles can be made!

Bradtc | 03. September 2012

Josh, would you mind posting the contents of your letter here? The easier it is for people to write the PM, the more letters he will get, the more this helps our cause. Thanks.

RobertMontreal | 04. September 2012

Here's the letter I just sent to the PM:

Good morning sir,

I am writing to you this morning to address an issue which I feel needs attention. I am buying a new electric vehicle (Tesla Model S) from a company in the US (Tesla). The car is manufactured in the US at their facility in California.

Tesla has only recently released the Canadian pricing for this vehicle as it is brand new on the market (perhaps you've heard of it), and they have divulged that they must pay a 6.1% import duty when bringing the car to Canada even though the car is manufactured in the US. They have informed anxious customers that they must pay this duty given that the elements going INTO the manufacture of the car are less than 62.5% of US origin even though the final assembly (even the metal stamping) is all done in the US.

I know that other prospective Canadian Tesla customers have written to you to ask for this duty to be dropped when the car is manufactured in the US, especially when it is an electric car and the government is promoting incentives to buyers when it comes to electric cars.

I propose that these duties should not apply to cars manufactured in the US by a US company, particularly when it comes to electric cars (where a large percentage of the car's weight comes from the lithium ion batteries which are manufactured out of country, but intelligently assembled by Tesla in California). Can an exception be made specifically for these cars, or can we propose an amendment to the agreement governing these duties?

Please let me know if you need any further information from me, I and many prospective Canadian Tesla buyers feel very strongly about this issue.

Sincerely yours,

Theresa | 04. September 2012

Robin, Even though I am not Canadian I have been following this thread. I think that you have a very well crafted letter.

I would advise those who want to write to your PM that you not just copy this word for word as this dilutes the impact. It then looks like a form letter which we as ordinary people tend to discount when reading it. But having said that Robin has done a great job of capturing the relevant points and you would do well following her example.

RobertMontreal | 04. September 2012

Sorry, I just have to clarify :)

My name is Rob actually (Robert).

I'm IN Montreal, hence the RobInMtl alias.

Not a great name... I know...

Theresa | 04. September 2012

Rob, Sorry about that. At least you are not mad that I wasn't able to figure it out and realize that it can be misread.

Jewsh | 04. September 2012

My letter:

"Dear Mr. Harper,

I trust my email finds you well.

About two months ago my wife and I began considering the purchase of a
second vehicle. Our main goal was to purchase a vehicle with the highest
mileage; we are eager to reduce both our carbon footprint and our foreign
oil dependency.

We were therefore extremely disheartened to discover that the Tesla Model
S was recently declared an import and will be subject to a 6.1% duty:



Mr. Prime Minister, we are trying to do our duty to the environment and
purchase a vehicle which I hear has more than 90% of its components list
manufactured in California. (A jurisdiction which as you know should be
covered by NAFTA and hence not be subject to any duty.) Our family
understands that such duties are commonly put in place to protect Canadian
businesses from facing unfair competition from those based offshore.
Unfortunately one explanation I was given was that by weight the Tesla
Model S was only 55% North American. Given that a large part of this
vehicle's weight is located in the batteries, I can only assume this is
the reason why a 6.1% duty was levied.

Essentially, I would like to know why I am faced with a 6.1% duty when I
am not aware of any lithium battery manufacturers based in Canada. Who are
we protecting?

Your reply is much appreciated.

With regards,

Joshua and Christine Burstyn"

Theresa | 04. September 2012

Josh, Just a point of clarification. The 62.5% is based on value and not weight. Don't ask me what value or how it is determined, I just know it is based upon value.

Jewsh | 04. September 2012

Thanks, Theresa.

I am hoping Mr. Harper reads all of our letters and might be able to reopen the ruling. In our case, the 6.1% represents a duty of apx $5900.00, making the $8500.00 Ontario rebate much less useful.

I am very disappointed that our government has not been more proactive and made it a priority to remove as many barriers as possible to electric vehicle adoption.

pilotSteve | 04. September 2012

@RobinMtl - FYI you can change your forum name (maybe RobInMtl) anytime easily should you wish. I mis-typed mine first time and changed to my current (correct) name.

Timo | 04. September 2012

Josh, Just a point of clarification. The 62.5% is based on value and not weight.

Part cost value? Then 37.5% of the 40kWh version is battery and other non-Tesla electronics. 37.5% of $57 is $21k. $21k/40kWh = $534/kWh. Sounds about correct, battery + some other minor parts go over 37.5% of the car value. It's much worse for 60kWh and 85kWh versions.

Brian H | 04. September 2012

I'd have dropped the bit about "foreign oil dependency". Not in Canada! We PROVIDE much of the foreign oil upon which the US is dependent, in fact.


Jewsh | 04. September 2012

Hi Brian,

"I'd have dropped the bit about "foreign oil dependency". Not in Canada! We PROVIDE much of the foreign oil upon which the US is dependent, in fact."

You are correct that we do (via the tarsands) produce crude oil. I believe, however that all oil goes into a collective pool. (Not a literal pool of course.) To my understanding, regardless of whether we produce oil we draw upon global supply when we arrive at the pump. That would mean are still relying upon at least some measure of foreign oil.

In any case, I wrote and submitted the email, realizing my folly only after I hit "send". Oh well. :-)

Ron_S | 04. September 2012

The 6.1% represents a duty of apx $5900.00, making the $8500.00 Ontario rebate much less useful.

At least Ontario has rebate. Wonder if Alberta would consider offering a rebate ?? probably NOT :((
Oh well...

jerry3 | 04. September 2012


Unless Alberta has changed since I was there last, there's no sales tax on anything. You're already getting a bargain.

Brian H | 04. September 2012

Wrong. Alberta and Sask., etc., have been producing and exporting since before a shovelful of oil sands was dug.

Reducing Cdn. usage might have slight effects on US imports, but is irrelevant to US import dependence. Which is soon (already in planning and strategic sense) to be history anyway.

RobertMontreal | 05. September 2012

Has anyone else written to the PM?

bortolottom | 08. September 2012

I know everyone here is in love with the Model S. Maybe no one more than me.

I have spoken with Mr. B and unfortunately the car and its increased cost has pushed the purchase price beyond what my wife and I can afford.

In so saying, we withdrew our reservation. For now. Maybe in a couple of years I will own one.

But for now, I continue to own my awful honda civic.

I hope that everyone that gets their cars enjoys them. I test drove one the other week and I have never had a better drive. Ever.

Enjoy the cars! someday I too will join the ranks of Model S owners...Just not now.

pbrulott | 08. September 2012

@ RobertMTL

I wrote to the PM a couple of days ago

@ bortolottom

I am really sorry to hear this. I have to admit, after seeing the price annoucement, i couldn't help but think that Model S will not be as popular in Canada just because of the price point vs the US. Depending on the Supercharger option for 60kWh, the maintenance cost and the presence of a service center or not in MTL, i might cancel as well.

pbrulott | 10. September 2012


Have you heard the news last night about our Prime minister signing deals with Asia/Pacific countries for less duty fees on environmental products.

Hopefully we can benefit from that momentum and have Model S exempted from the 6.1% duty.

Continue to write to the PM

RobertMontreal | 11. September 2012

George, if you are still reading this thread... I know Canada is only 5% of your target market right now, but Canadians are generally an environmentally friendly population who are open to change, and not as set in their (traditional) ways as some other populations. I think we are a great potential market for Teslas in general.

Please appeal to the various government bodies governing this 6.1% duty. It really makes no sense when you look at the purpose of environmentally friendly automobiles AND the fact that the Tesla is assembled almost 100% in the US.

Jewsh | 11. September 2012

Brian H - Thanks for the info.

I worry that our current federal government is not particularly focused on environmental performance. Seems like you are too!

pbrulott - Are there any details on "Environmental Products"?

Keep up the good fight,


WattTheHell | 11. September 2012

I got back my deposit yesterday and cashed it today.
So long everyone. =(
The 10% increase was too much for me. I know about the 6.1% duty but really, with current currency rates (1$US = 0.973$CAN), this whole 10% increase does not make sense to me...

I'll keep watching for the upcoming Bluestar.

WattTheHell | 11. September 2012

Canadian P39 has left the building.

pbrulott | 15. September 2012

@ jewsh, no details sorry

question to all, what is the cost of personal delivery for Canadian Model S? is it $950 like for the US deliveries, $950 + around 8-10% like for the car and options or more?

any insights?

jeeps17 | 15. September 2012

@ pbrulott:

The prices listed are for north america, and should be the same as those in the USA (no markup).

+1 to AWESOME for the official announcement of a Montreal service center!

RobertMontreal | 17. September 2012


Where is the announcement of the official Montreal service center?


Are Canadian prices changing to reflect the strong Canadian dollar?

VanSingh | 17. September 2012

For those of you who wrote to the PM, have you received any responses?

olanmills | 17. September 2012

"Are Canadian prices changing to reflect the strong Canadian dollar?"

I would doubt this, if you look at all kinds of other retail products made in other countries, the prices aren't constantly adjusted based on exchange rates.

They might be changed over a longer period of time and a large difference in the exchange rate between when the product was introduced and now might be one of the factors in dropping or raising the price, but I haven't heard of manufacturer's constantaly adjusting MSRP's based on currencies.