Tesla (NASDAQ:TSLA) has begun shipping China-made Model 3 and Model Y vehicles to Canada, according to the company’s website. The cars qualify for federal incentives of C$5,000 ($3,700) in Canada, and are listed for C$61,990 in Canada, about 22% more than the equivalent vehicle costs in China before incentives.
Tesla’s move to export to Canada from Shanghai could help it keep vehicles made at its plants in California and Texas for sale in the United States, where they qualify for potential tax incentives of up to $7,500. The company’s Shanghai factory manufactures EVs for sale in China and exports to overseas markets, including Europe.
Tesla uses a code when listing vehicles for sale that corresponds to the first three digits of the vehicle identification number, or VIN. The VINs for Tesla models built by the Shanghai factory all start with the letters “LRW.” It was not clear how many China-made, Tesla vehicles were available for purchase in Canada or how many had been sold.
Tesla said last month that it would offer a new, cheaper version of its Model Y in Canada, a rear-wheel drive variant of the SUV-styled crossover that would qualify for Canadian government incentives. A Tesla production plan reviewed by Reuters showed the automaker had designed and tested Model Y vehicles for export to North America, with a target of producing nearly 9,000 for export this quarter.
Tesla’s move to export China-made vehicles to Canada could help the company keep vehicles made at its plants in California and Texas for sale in the United States, where they qualify for potential tax incentives of up to $7,500. It also opens a new market for Tesla Shanghai, which last year accounted for more than half of the company’s production.