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Canadian pricing out... i am in tears

Canadian pricing is out:

http://ca.finance.yahoo.com/news/tesla-motors-announces-canadian-pricing...

$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

We should send George Blakenship emails if we are unhappy. His email address is: gblankenship@teslamotors.com.

I am more than unhappy, I feel totally betrayed and that Tesla is not serious with his business in Canada. Proof is GB's statement about the 6.1% duty => doesn't seem to know what he is talking about. And if my math is correct, 64,500 vs 57,400 is 14% not 6.1 + 2% as he mentioned. ok there is leather included but that is still 11% more.

My model and trim is TMS 60kWh with pano + leather + blue paint and tech pack + delivery. US price for this is $75.9K and Canadian price is $83.6K + tx which is 15% here in Quebec. That makes a huge difference to my business case.

Options are also more expensive, again for no reason

Wait for European pricing to be announced. Knowing that someone else is in an even worse situation than you are will offer some comfort and help dry your tears.

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." (pbrulott)

Where did you find this?

Thanks Volker.Berlin

Found it in the link below. thought I had posted it in my original post. sorry

http://ca.finance.yahoo.com/news/tesla-motors-announces-canadian-pricing...

Really? Why would you feel betrayed by Tesla over import duties that are not under their control but rather charged by the government? While I also don't like having to pay 6.1% above US pricing and think that it sucks that we have to pay duty on a US-built car, I'm not blaming Tesla. If I had to guess, I'd say that the duty is charged based on the weight of parts and thus the Japanese battery components put it over the limit for foreign content.

Compared to other manufacturers who charge well above US prices despite the exchange rate, Tesla appears to have very little markup. I suggest complaining to the correct authority when it comes to duty, not Tesla who is subject to Canadian law.

The insurance numbers for Canada are *excellent* and while the duty issue is perhaps a surprise to some, the cost difference is in line with other manufacturers and better than many.

Wait for Australian pricing. It will probably be double the USA price, AND our dollar is stronger than the greenback. All other vehicles we get follow this formula, regrettably. Not much relief tax wise for EV either.

When I lived in Vancouver everything was way more expensive so I pretty much expected this. Even shoes were twice the price.

Yeah, I remember the sticker somewhere that said 55% US/Cdn(?) content. But the battery is too much of the mix, maybe.

Need Panasonic to throw up a branch plant in Mexico!

Looks like the duty and hot leather total $7K pretty much across the board.

Seems to me Ford and GM have closed plants in the Oakville area in the last few years. Maybe ...

Hi everyone. There seems to be a bit of confusion surrounding this issue.

Brian H, you are correct.

pbrulott, unfortunately, all cars manufactured in North America cannot be imported into Canada duty free. In order to be duty free, a minimum percentage of the car must be made in North America. Model S falls slightly below that percentage, so our cars cannot be brought into Canada duty free. We must pay the 6.1% import duty. We do not have a choice. That is the only reason why we are including it in our pricing.

I hope this helps make things a little clearer regarding the 6.1%.

Regarding the overall math, here's how we see the build up:
US Base price
+ $1,500 USD for interior upgrade
+ 6.1% duty
+ 1.5% to 2% for incremental transportation and business costs
Then convert this total using a mid-term currency conversion rate

That's the way we did it.

pbrulott...Thanks for starting this thread. Hopefully it is now clear.

Found it in the link below. thought I had posted it in my original post. sorry (pbrulott)

Yes you had. My fault. Thank you anyway. And congrats for being the first to get a reply directly from GB on these forums!

Thanks for the quick answer/post and the math is pretty clear.

Obviously I didn't know about that US/Canada/Mexico part threshold Model S doesn't meet and didn't plan for the 6.1% premium.

Model S is an expensive car, way more money than I would have put on any ICE. $7,500 (price differencial for my model/trim) + 15% sales tax in Quebec is, you would imagine, a huge bite to swallow.

Patrick

Can we then assume EU prices around the same as Canada ? We have no 6.1% import tax in Norway, but shipping is probably more expensive and also the chargers will be if 3-phase is standard and not an option. I assume we will get the same mandatory interior upgrade with heated seats only since it can get quite cold here too. The perf.package should then be cheaper by $1500 I think ?

I am still getting the model S. I was considering the studio sound package and the tech package. At these prices I can live without these packages. I plan on getting the active air suspension and the 85kWh battery pack. At these prices I hope that (as Elon said) the model S will be the only car that I will ever need.

One positive thing about living in Norway is that one is used to a totally outrageous tax level. The ICEs in Norway are priced just unbelievably high. As an example: A base model of BMW 520 DA with 184 HP you must part with 559 000 NOK. 1 US$ equals 5,94 NOK: 94100 USD for one of those babies. If I can get a Tesla S 85kWh perfomance with the extras for 130 000 USD I am happy. More so - grinning all the way to the nearest bank.

I have just done the math.
It works out exactly as George said. They are being very transparent here.
It's a lot of money but we knew it would be more.
They don't make the rules for Canadian import duty.

Wow! I guess there goes my 60kWh battery and here comes my 40kWh battery. That is really too bad. I was hoping closer to par, but after seeing the math I guess I wasn't' aware about that 6.1% being an issue as I thought it would qualify for NAFTA. Leather isn't something I was going to go for either. Sigh... I can only hope that the Vancouver service centre will open shortly after the Toronto one - I have seen some advertisements for job opening there. If that doesn't happen, that will be the breaking point for me.

Is there an extra delivery charge?
I haven't seen that noted anywhere>

Thanks Volker. I find GB live post really helpfull like in the "visor light and rear light issue" that ended up being a non-issue.

I might drop options like you Stephen K but really like the keyless entry. Still unsure about the headlights but seems like a nice upgrade. However, with a car at that price, it would unfornate not to have options like keyless, nav, Power rear liftgate, homelink...

@Jgdixon@cogeco.ca

I did plan for a more expensive delivery charge ($1,500) than the US one which is usually the norm for car makers. but this is pure speculation at this point.

While I'm not thrilled about the difference, I'm happy it's not worse.

Also, in Ontario we get $8500 back which is $1000 more that in the U.S. so that helps a bit.

Hi George,

Just a simple post of you and everyone is back on track. Please try to keep us informed as much as possible.

Have fun after you're delivery of your Model S this week.

The $8,500 Ontario rebate is after taxes whereas the US $7,500 credit is off of the base price. They work out to roughly the same thing.

mknox, is the US we are taxed off the gross value of the car (i.e. the full price not substracting the $7500). The $7500 tax credit is something we will obtain either when we file our taxes for 2012 or by adjusting our deductions on our current paychecks.

So the Ontario $8500 tax credit, if it works in a similar way to the US Federal tax credit, is cetainly better.

typo: "... in the US..."

In Quebec, the rebate is $8000 after taxes and we pay SAAQ 1% luxury tax.

75,400
+ 15% tx
= $86,700
less $8,000 rebate
= 78,700
+ 1% luxury tax (over 40K)
= 79,200

It would really make things interesting if the percentage North American made the cut to avoid the 6.1% with the 40kWh battery, but not with more battery cells. This assumes the battery part count/value is throwing things over the edge.

volker.berlin:

On the basis of the Canadian info can we compute an estimated price for europe (or the UK)?

GB?

@George:
You stated: " Model S falls slightly below that percentage, so our cars cannot be brought into Canada duty free. We must pay the 6.1% import duty."
How far from the percentage the car is? Can't you find a way to add "Winter option" or anything made in america that will bring the car over the required limit. I'd rather pay 6 % more to get made in USA options (that can cover our special needs for winter for example), than paying am import tax.

Looking for the performance, you arrive a 100,400$. I'm not a maketing expert, but for sure putting it as 99,900 would have been much more smarter... or at least just a little bit less scary.

As I'm expecting to buy a performance... I'll more likely downgrade from sig to general production to be under the 110,000 budget I was planning.


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