Tesla Prices Model X In Canada From $119,000 – Currency Woes Abound, Help Coming

2 years ago by Jay Cole 41

Tesla Model X This Month In Geneva

Tesla Model X This Month In Geneva

Anxious Canadians finally received pricing on their Model X reservations this week (Tuesday), and thanks to some particularly ugly currency swaps over the past 3 months and a Model X built in California, some sticker shock has ensued.

The pricing basics for Canada (all figures plus $1,300 DST):

*- base Model X 70D – from $119,000 ($89,500 USD)
*- Model X 90D – from $142,300 ($107,000 USD)
*- Model X P90D – from $156,800 ($129,300 USD)
*- Model X P90DL – from $195,900 ($147,500 USD)

The “Ludicrous” option goes for $14,800 ($11,100 USD).  A fully optioned out Model X P90DL can go for north of $206,000 ($155,00 USD)

Looking at the comparative price in US dollars draws some raised eyebrows, as the Model X starts at $80,000 in the US, and the P90D from $115,500.

Base Tesla Model X70D Canadian Pricing

Base Tesla Model X70D Canadian Pricing

Tesla Model X At Canadian International Auto Show In February - Not Surprisingly Pricing Was Not Available At The Time

Tesla Model X At Canadian International Auto Show In February – Not Surprisingly Pricing Was Not Available At The Time

The reason for this descrepency is fairly simple – it’s the currency swap.

As such, we expect Tesla to adjust these prices down quickly as many Canada reservation holders have balked at these numbers (more on that in a bit).

Simply put, the Canadian dollar had a precipitous drop beginning December 5th and lasting through January 19th, moving from a value of 75 to 68.5.  A 10% move such as this in just ~5 weeks is almost unheard of.

The Canadian dollar’s fall was due to the further collapsing of oil prices in the first 6 weeks of the year (something Canada relies on heavily for revenue), and an interest rate environment on the wrong end of the dollar trade (up in US, down in Canada).

At the time, it seemed like the drop was near endless, and the Canadian dollar would be depressed for an extended amount of time.  Clearly, Tesla reacted to this situation at this time and acted accordingly.

Tesla Priced The Model X Only Recently...But Not Recently Enough

Tesla Priced The Model X Only Recently…But Not Recently Enough

However, as quickly as the dollar fell, both of those factors have now flipped  – and mostly over the past 2 weeks.

From late January, Crude has gained ~35% and the prospect for those 4 previously forecasted US interest rate increases have vanished, while at the same time, the talk of Canadian rate decreases have ended.  The net result has caused the Canadian dollar to move from being worth 68.5 US cents all the way back to 75.3 cents.

So the trend which had seemed to doom the Canadian dollar to continue to fall to new lower lows (and of which Tesla reacted to when pricing the Model X), has now made a complete about-face, and now looks to continue the recent strengthening trend going forward.

Our nutshell advice to Canadians (and no Tesla won’t like this), let Tesla know you won’t be ordering your Model X until someone at the company picks up a recent copy of the Financial Times to learn that the world has once again changed.  Or if you aren’t into complaining, just sit on your hands for awhile…Tesla will figure it out.

 

Tags: , , ,

41 responses to "Tesla Prices Model X In Canada From $119,000 – Currency Woes Abound, Help Coming"

  1. Driverguy01 says:

    Not only are Canadian prices ludicrous, but Tesla has also raised their used car prices on cars already sold in the Canadian market. how crazy is that?
    I’ve been looking for a used MS for the past year and just as prices were beginning to fall in ”affordable” territory, BANG! They raised their used car prices OVER 12%!
    A car selling for $72K one day was suddenly selling for $82,500 the next day.
    I feel that once the car is sold in Canadian currency, in Canada, it should not be subject to the US dollar anymore.
    Just sayin’.

    1. Jay Cole says:

      Tesla has shown to be very sensitive to the currency swaps vs the US dollar throughout the world as a result of a single manufacturing location and a heavy percent-costing on one particular commodity (the battery).

      For the most part, major automakers have diverse product lineups, that are built and sourced all over the world to mitigate the currency issues to some degree.

      As such, they will have some products in every market that are priced as “dogs” but also some that are huge “winners” based on the source content and manufacturing location – the net result (in theory) is an averaged margin in a target zone.

      Tesla does not of course have such abilities as of yet, and the result is some frustration from customers on the continuing moving price benchmarks…something you really can’t do long-term and hope to be successful, ultimately the customer can’t bear the brunt of your shortcomings.

      This is the most likely the reason we have seen Tesla come up a bit light on sales forecasts in the past, especially in Europe (ex-uber incentive countries), the USD/EUR swap in 2014 thru Q1 2015 was pretty bad (72.7 up to ~94 in March 2015 …and has basically stayed at that level to today.

      (via xe.com)

      1. Driverguy01 says:

        agreed Jay, but i was talking about used cars available in the Canadian market.
        Checking again this morning, i can see the prices have come back down to normal levels again. But only 4 cars available now in the whole country.
        P15831 shows the history of a $87,400 jump to $91,100 then back down to $86,000 now.

        http://www.ev-cpo.com/

    2. evcarnut says:

      CANADIAN PRICES ARE 0UTRAGIOUS! to say the very least……….

      1. jerryd says:

        EVCARNUT, they are the same price as US, just the Canadian $ has dropped in value.
        The smart thing is buy in US$ and as the Cn$ rises as oil price rises back, makes the Tesla 20-30% off.

        1. evcarnut says:

          Our dollar has taken a Huge hit lately,It was par & up to 15% better not long ago., that would be Ideal,If we ever see that again…High dollar values are hard on the US economy as well. but I can live with a $45,000 Model# Price tag, Tax In it’ll about $52,500 minus the after tax rebate of $14,500..still not too bad if the car turns out nice with decent range…

  2. Mark says:

    Wow, glad I bought my inventory S for 65k cdn when I did. I had an X reservation, but even if prices dropped 10k I couldn’t afford it.

  3. evcarnut says:

    FYYI…0il has very little to do with the fall of the canadian dollar….we are not saudi arabia …the American dollar is artificially too high for N0 good reason ,0ther than PARTLY….$USD $$$ are still utilized in the commodities markets ie: gold ,silver 0il etc: 0ther than that, the So called Federal reserve MANIPULATION Which is Run By the Elite Rich Bankers are keeping tthe USD$$ Up.,, messing up the USA Economy & the Manufacturing in USA.((((most products are made 0ffshore by American companies That don’t Pay USD$$ Taxes))))….There is N0THING federal about them ! 0nly a bunch of greedy rich people Manipulating the US economy & the American masses to satisfy there enormous $$$ Greed .SO STOP BUYING ALL THE IMPORTED “JUNK” & BUY “USA” MADE G00DS 0nly!!!!.., Whatever little they make in the USA anymore!.

    1. Jay Cole says:

      Sorry that is 100% false, there is decades of historical data on this one – oil is a huge economic engine for Canada, both publically and privately. It sometimes varies slightly due to some short-term economic factors, but here it is:

      1. evcarnut says:

        U N0 N0thing!

      2. jerryd says:

        Hi Jay, at least someone has a clue, unlike EVcarnut. Good post.

      3. oil industry in Canada is worth 3% of our gdp. the dollar shouldn’t be tied to oil but it is. it won’t be as much in the future though as the world moves past oil. the decoupling has already begun.

  4. evcarnut says:

    BTW…….USA Produces much more 0il than Canada …So then “WHY” Isn’t the $$USD$$ DOWN T00????????So That Article Is Pure “HUNGAWA” BS!

    1. Jay Cole says:

      Once again, no it isn’t.

      Here is a blow-up of the more recent 5 year period to illustrate the example in the more extreme circumstances of today.

      Again, we have had an odd interest rate/economic divergence over past few months, but overall the two track very closely.

      The amount US produces is not relevant. What is relevant is how much Canada produces and exports, (peaking at 3.3 million per day to US in December – almost 50% of the US import total), especially in relation to Canada’s much smaller population/GDO (1/9th-GDP).

      This number would be akin to the US exporting 31 million barrels a day into Canada in Canadian dollars (based on the GDPs of the two countries). As a comparison, the US only produced 9.2 million barrels/day in December of 2015.

      The tax/royalty/economic revenue generation on oil is enormous to Canada. Universal/free health care is expensive, (=

      1. SparkEV says:

        Thank you Jay! +1.33! You should write more about econ issue. In a sadder note, it’s unfortunate oil is such big part of Canada.

        1. Jay Cole says:

          Love the +1.33
          /nice

          It would be fun to have more economic based articles/discussions…but pretty hard to pepper those into plug-in stories, (=

          1. Pushmi-Pullyu says:

            Well, I’m finding your comments on the subject to be quite informative, so thanks again for taking the time to write them.

            It’s interesting that Tesla touts local/regional sourcing as method of increasing efficiency and cutting costs, but from what you’ve said on the subject, this is going to make Tesla far less competitive on the international market. Sadly, I guess that’s just more spin from Tesla.

            +72.7 😉

            1. Jay Cole says:

              I love this sort of stuff, so my pleasure.

              Tesla’s dominant regional production, sourcing, etc. is great for Tesla in the US, it gives them a big advantage (even moreso when the Gigafactory is running).

              We have seen that born out in the sales numbers, and the disproportionally higher US sales results (over early projections ~2-3 years ago) as the USD Index has strengthened.

              But as you/we say, it definitely puts a lot of headwinds on the brand internationally.

        2. evcarnut says:

          N0T True., 0IL PRICES only affects western Canada About 3 Provinces 0ut of ten..THEY LIVED HIGH OFF THE HOG FOR TOO LONG ANYWAYS…Nothing wrong with $38 0il Thats $51.00 CDN$$ …Mining Metals & precious Metals Is A Bigger industry in canada…..THE USA MAKES MUCH MORE OIL THAN CANADA ….

          1. kdawg says:

            WOuLdn’T iT bE moRe r3lEVANT if Y0u USED % of GDP vS. AM0Unt?!

          2. Mark says:

            USA makes more, but oil is a much bigger piece of our economic pie.

            1. evcarnut says:

              thank You….

          3. wavelet says:

            Would you please fix your keyboard? It hurts my eyes to see letters & digits used interchangeably, and lowercase and uppercase used willy-nilly. I’m not even a native English speaker.

            While you’re at it, if you want people to be able to understand what you write (which is a necessary precondition to agreeing with it), you might also pay attention to grammar & syntax.

        3. wavelet says:

          +1.33^2

    2. Driverguy01 says:

      Because the Canadian economy has been based on dirty tar oil exportation for the last 10 ”Conservative Government” years. The US economy is hardly based on fracking juice afaik.
      Let this be a lesson for the US people for the next election.

      1. Pushmi-Pullyu says:

        Far too much of the U.S. economy is based on “fracking juice”, as you put it. Unfortunately, the stock market rises and falls on the strength of oil futures.

        But we Americans export very little of our oil, unlike you Canadians, and that does make oil production’s effect on the U.S. economy much more stable.

    3. Dan says:

      The US dollar doesn’t track oil like the Canadian dollar because the US has a more diversified economy.

  5. kdawg says:

    Since Teslas are bought online and made to order in the US, why can’t they just price them in US dollars and let the current exchange rate be what it is at time of order?

    1. Driverguy01 says:

      +1 Kdawg

    2. +1000!
      Beyond that, can Canadians buy a US order fo delivery, but plate/register it in Canada for rebates?

      1. Jay Cole says:

        You used to be able too (technically you can still make it happen – but not cost effectively), I’ve brokered EVs in both countries myself.

        However, Tesla made it difficult to cross the border shop in 2014 by asking Transport Canada to remove the Model S (and we assume the Model X as well soon) from the admissible vehicle list from Canadian Registrar of Imported Vehicles (and assuming the opposite transaction is also true).

        Tesla stated their facilities could not handle the “substantial modifications” necessary to make cross-border shopping possible…although there is every indication that there is no actual “substantial modifications” necessary – and the fact the Model S was already on admissible list before Tesla made the request to remove it.

        http://www.tc.gc.ca/motorvehiclesafety/safevehicles/importation/usa/vafus/list2/TESLA_MOTORS.htm

      2. Mark says:

        Tesla’s are not importable from USA to Canada. Other way around is ok. This is why used prices have gone up. Americans are coming up here and scooping up our CPOs for a discount.

    3. JakeY says:

      That only makes sense if Tesla does not do any currency hedging (and doesn’t plan to in the future). Also marketing-wise it’ll be a mess since the price will be changing everyday.

      1. kdawg says:

        Just advertise the price in USD on the website. Tesla doesn’t really market their car, so not a big deal there.

        1. Jay Cole says:

          I think Tesla could have probably gotten away with something like this (or a hybrid version of some sort) for its premium products (Model S, Model X) as people shopping in this price bracket could understand the transaction easily, as they are likely to have USD accounts/investments.

          But it probably wouldn’t translate well/at all to the Model 3 and the desire to sell into the general population.

      2. zzzzzzzzzz says:

        Currency hedging is good for short-term exchange rate peaks if you can’t self-insure against them, but it doesn’t help for long term rate changes that stay for many years. Their factory and probably many suppliers are in the US and so the prices are tied to USD.

  6. So, will Model 3 reservation deposits be $1,000.00 US in Canada, or will they end up being $3,000.00 Canadian?

    1. SparkEV says:

      How did you end up at $3000? It could be $1333 CDN at current exchange rate.

  7. ModernMarvelFan says:

    So, if the exchange rate stays the same by the time Model 3 comes out, the $35K Model 3 will start at $46.5K in Canada… LOL

    And will the $1K deposit cost $1.32K on April 1st for Canadians?

    Where are all the Canadian Tesla Fan Boys when you need them? LOL.

    1. Mark says:

      We are here! LOL

      Yes, fully expecting Model 3 to start around 45k here, unless our dollar improves between now and then.

      Deposit I expect to be $1000-$1300

    2. Marc says:

      Nuther one here!
      Lemme tell you a little secret: Saudis will eventually shut the oil valves… they can’t afford this indefinitely.
      If the CDN dollar is so low right now, imagine what will happen after the Saudis decide they’ve had enough!

      If I were American, I’d buy as many Canadian Teslas as I could (perhaps buying CDN dollars would simpler, but we’re on an EV site with EVs as the official currency), and I’d wait it out.

      Opec greed isn’t known to be patient.