Production for Some Canadian Tesla Model Y Changes To Shanghai Gigafactory
The base model Tesla Model Y will come from China.
Tesla is certainly no stranger to price cuts, the brand has had six this year alone. Yet, amongst the model Y’s latest cut, the manufacturer introduced a new base trimmed model that will be the new price leader. According to a report from Reuters, that new base model will come from China. At least, the Canadian ones will.
The Shanghai Gigafactory has been a crowning jewel of production for the brand. Touted as very efficient by Elon Musk himself, the factory has been churning out Model Y and Model 3’s for the Chinese market. However, the brand has struggled against increasing Chinese domestic EV competition, and sales have lagged in recent months. Some say that this is a way for the brand to offset some of its production problems. Because the US’s Inflation Reduction Act makes any Chinese-made EV ineligible for incentives, exporting them to the US is a no-go.
The new base model is sizably cheaper; it’s a RWD single motor variant that will be $59,990 CAD; $10,000 cheaper than the next model up, the AWD dual-motor Long Range Performance. Because of the new base trim, the Model Y now falls under the $60,000 base price cap for Canadian EV incentives. Meaning, the Model Y now qualifies for a $5,000 subsidy.
According to Reuters, the Canadian Model Y base trim uses a different battery compared to its U.S.-made cousin. Thus, its equivalent range is only 245 miles, compared to 279 miles. The Chinese-made base trim Model Y should arrive in Canada in May or June.
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Kevin has been obsessed with cars ever since he could talk. He even learned to read partially by learning and reading the makes and models on the back of cars, only fueling his obsession. Today, he is an automotive journalist and member of the Automotive Press Association. He is well-versed in electrification, hybrid cars, and vehicle maintenance.
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