Why does the Model S cost $15000 more in Canada?

Why does the Model S cost $15000 more in Canada?

Hello everyone

I recently test drove the Model S and was blown away with the performance/technology and am seriously considering one. I am aware of the fact that we always pay more for cars in Canada. I might be wrong but I have never seen a price difference between the two markets to be $15000 on a car.

I understand if the freight is more because the car has to be shipped to Canada but a price difference of $15000 on MSRP is astronomical.

I am trying to understand, how Tesla is justifying it.

Does anyone have any answer?


Gizmotoy | 01. November 2013

They're actually at just about price parity (~$500 more in Canada). This was discussed at length here:

Quick summary, the US prices include our Federal Tax Credit, and Canada requires a ~6% tax on all cars imported to the country.

Objective1 | 01. November 2013

The Model S is not considered a North American car for NAFTA purposes (due to its batteries which come from Japan, mostly). So the Canadian government taxes it more highly than other American cars.

Use to search the Tesla forums for other threads that discussed this in detail, or search on

No evidence has been found in any market that Tesla does anything other than pass on the costs of selling in the market.

Kaboom | 01. November 2013

Yes, the big difference is that on the US website they show the sales price less the government tax break. So to compare closely you need to also subtract the 8500 break from the canadian price. And then there is the import tax/duty, and as well the 4% exchange rate difference as it currently stands.

And in canada leather upgrade included.

muradraza | 01. November 2013

Thanks all :)

suegie | 01. November 2013

And there is a difference in the exchange rate, right?

KenN | 01. November 2013

Small difference ... right now, it's hovering at the 3-4% mark so that (I'm a math whiz) is $3-4k on a $100k purchase.