Tesla Model Y is Now Just as Cheap as Model 3 in Canada

Tesla is doing it again. Following a couple of price cuts last year, the popular Model Y compact crossover has gotten even cheaper now.

The MSRP for the entry-level, single-motor RWD variant was recently slashed $4,000 to $53,990 (not including freight, PDI and other fees), making it just as affordable as the Model 3 sedan. The latter still has the edge in terms of maximum range, mind you, with an NRC rating of 438 km versus 394 km for the Model Y.

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A $4,000 reduction was also applied to the dual-motor, AWD-equipped Long Range variant, which now starts at $63,990. Again, this matches a comparable Model 3, although range remains shorter at 497 km versus 548 km.

There’s more good news if you happen to live in Quebec. Since the Model Y Long Range has dropped below the $65,000 price limit set for the province’s EV rebate program, it’s suddenly eligible to a $7,000 incentive in addition to the $5,000 aid from Ottawa.

As for the top-line Model Y Performance (459 km of range), the MSRP is unchanged at $74,290. This one doesn’t qualify for any of the rebates.

According to the Automotive News Data Center, Tesla sold approximately 18,500 Model Y crossovers in Canada in 2023, up 131 percent from the previous year. The latest pricing adjustments will inevitably keep the ball rolling.

Unlike the Model 3, which received a significant update for 2024, the Model Y is pretty much unchanged. However, you can bet that similar enhancements are coming, possibly next year. The Model Y is currently entering its fifth year.