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Canadian vs American pricing

I'm sure this question has been asked but I couldn't find the answer (didn't search for too long lol)

When I take a look at the top model in Canada and America, the price difference before any options is $16,000! I understand there's some sort of import tax
, but I can't see it being a 16% of the value of the car… What justifies this huge price difference?

Can't wait to get the car! Just curious about the giant difference in price :)

@kurolap

In EU, VAT taxes are included in the price. Is there anything similar in Canada?

In California, the price of the car is 8-10% higher than MSRP due to the sales tax due.

Also, did you notice if the price difference included the tax credits (in the U.S. Elon decided to subtract the $7500 federal credit from the top line price).

We have a 13% additional Sales tax so, no it's not included.

ModS does not have the requisite minimum percentage of North American sourced parts and materials to satisfy the NAFTA requirements for duty free import. That's the primary driver of the price difference. Ref: http://www.teslamotors.com/blog/inside-tesla-082112

“Pricing in foreign markets can be very complex, so we have taken a very straightforward, transparent approach to pricing Model S,” said George Blankenship, vice president worldwide sales and ownership experience. “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.”

From:


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