Some Tesla Model 3 Buyers In Canada Have To Budget For $14,000 More

JUL 16 2018 BY VANJA KLJAIC 36

The additional payment is due to Ontario’s abrupt decision to end their incentive program

Every stream of good news for Tesla always seems to interrupted by a few of bad news for the American car maker.

According to CBC, for customers wanting to order a Tesla Model 3, an additional payment of $14,000 over prior expectations will be in order, all due to Ontario’s sudden decision to end the incentive program that the province had for electric and hydrogen vehicles.

While future customers will be well aware of the incentives program end, some Tesla Model 3 customers will most certainly have shell shock over this decision. Since this program affects owners who have ordered their vehicle directly from the manufacturer – read everyone who ordered a Model 3 – they will face a situation where no rebate will be available for their purchase, hiking the price of their vehicle by an additional $14,000 beyond their previously anticipated budget.

According to Ontario’s Ministry of Transportation, any vehicle eligible for a rebate will have to be delivered, registered, and plated on or by July 11th – and for most Model 3 owners, that simply will not be possible.

Middle-class families under strain, Tesla the only one to be hit this hard

CBC interviewed a son of a future Tesla Model 3 owner on the issue. Matthew Cheung told CBC Toronto about the situation where his father’s been saving up for an electric vehicle for some time, wanting the modestly priced Tesla Model 3. Since the Model 3’s reveal – which retails for $45,600 – Cheung’s father felt that, finally, owning an electric vehicle was within his financial reach. While it still posed a pinch of a stretch, Cheung said his father put down a non-refundable deposit for his “dream car” the day before the election.

While they both knew that the rebate would be canceled in the future, they’ve expected it to be done in a different way, a way where existing orders – part of a car maker’s ordering process – were still going to be honored. However, that did not happen and it left many Ontario based families in a bit of dire straits.

“The way it was done is unfair and is leaving many Ontario families in a bad place,” Cheung said. “The government broke the promise, and in a way that especially singled out a single manufacturer.”

Fortunately, it seems that Tesla isn’t to be blamed in this cases. The ruling mostly affects middle-class families that wanted to go green but are now faced with a tough decision on their hands. However, Tesla Motors have already offered some customers refunds of their deposits, alleviating the situation at least a bit.

The end of Ontario’s electric and hydrogen vehicle incentive programs

This move by the Ontario government, announced Wednesday, is a sheer dumbfounded move on their behalf. The decision to end their incentive programs for electric and hydrogen vehicles and an electric vehicle charging station is bad in so many ways. The environment is the last one to feel the effects of this decision, but in the long run, it will be hit the hardest. Meanwhile, Ontario families are hit with a bad decision to make, supplemented by the immediate effect on EV and hydrogen vehicle sales, charging station installation and other, related industries.

According to an official statement by the province, their aim in canceling the cap program is to help bring gas prices in Ontario down by 10 cents a liter. Additionally, they aim to cut costs for Ontarians by $1.9 billion per year. However, the decision has been questioned by both the industry experts, local politicians and regular Ontario folk alike.

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36 Comments on "Some Tesla Model 3 Buyers In Canada Have To Budget For $14,000 More"

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Electric cars unfortunately have turned into lightning rods for political discontent. The rebate program was described as “giving millionaires public money to buy Teslas” during the election campaign. Never any mention of the huge subsidies and tax breaks given to fossil fuel companies. In today’s world perception seems to count more than reality. Two years ago the subsidy was $8000 which was enough to tip the scales for this not even 6 figure income individual to purchase a “humble” Leaf. The EV experience has been good enough so far that I will likely replace my 30kwh Leaf in 2020 for a higher capacity BEV if I can do so under $50,000 which is twice as much as I was spending on ICE cars. Beyond this I get a little nervous as I’m already at “retirement age” but still working. I might add that there are public payoffs for EV adoption which don’t show up directly on gov’t balance sheets. Cleaner air to breathe in cities means lower health care costs. Ontario hydro and power generators can operate more efficiently with people like me charging their cars at night. Ontario Hydro has often sold power below wholesale at night to outside… Read more »

Sad but all true

So does this mean that the new government is using this money that they’re saving from supporting BEVs to subsidized gas prices? Subsidies are paid for by taxes and everyone who thinks that paying part of your gas bill by taxes makes it cheaper can’t do basic math.

They no longer do Cap and Trade.

Correct, they’re way of lowering the Gasoline prices is to, give the money originally designated to the middle class families wanting to purchase EVs, straight back to the OIL companies in Canada, such as ESSO, Petro & Suncore (as these companies will never lower gasoline prices, out of the “goodness” of their harts), they are far to powerful to be forced even by the Canadian Government (u can figure out easily why that is). In other words, $14,000 designated for a family’s electric car, goes straight into an OIL execs wallet (perhaps he can get another Range Rover for Christmas) and the bonuses that will come from the additional profit margins from this move. For a avg family with a compact sedan, this will mean a $80-160/year lower fuel bill (which is basically meaningless), but it also promotes buying more huge SUV & pickups trucks. By now you can see a pattern emerging, and it’s pretty clear who’s pockets will be filled by the Ontario’s new misguided (or Corrupt ) governing party. Those that tried to defend Doug Ford, are also lacking the facts, as he is currently being sued by the wife of his deceased brother for his brother’s… Read more »

Any government program which ends immediately is bad policy. Citizens must have predictability from their governments.

What’s especially sad about all of this is that Doug Ford now has a commanding lead in the legislature even though he only got about 40% of the popular vote. Blame the Westminster system :-/

In other catastrophic environmental news out of Ontario, the province has cancelled its cap and trade system, effectively pulling over 14 million people out of even the weak ambitions of the Western Climate Initiative. At least the federal government has promised to impose a price on carbon, but we still have to hope that the courts rule that legal when Ford challenges it, as he has promised to do.

Just remember, 60% of voters voted against this man. Electoral reform, anyone?

Ford may have campagn promises to keep, and court battles to fight, but just like the Gas Plant Court costs the previous government paid, Doug may have just opened himself up to suits from individuals, on the handling of this, due to the lack of balance, selectively punishing Tesla buyers over GM or Nissan buyers!

Also, Cap and Trade was an International Commitment, so he may have opened the province to internation law suits!

“…selectively punishing Tesla buyers over GM or Nissan buyers!”

That’s not true. Many people are waiting for Bolts and Leaves as well, which if not plated by July 11th won’t qualify for the rebate either.

There is nothing anti tesla here…

Not true, any ev other than Tesla will still get the rebate if delivered before September.

Sept 10 to be precise.

Actually, GM stopped production of the 2018 Bolt back in early May and advised all pending orders (for 2018s) that those would be filled with 2019 models. We’re talking hundreds if not thousands. Long story short, the 2019 Bolt is not on the list of vehicles eligible for the incentive even though these purchasers purchased their vehicle before Doug Ford was even being spoken about. The proper way to do this should have been all vehicles ordered by a given date (in this case July 11, same day the announcement was made) are eligible for the rebate regardless of model or delivery date. Citizens have no control over the delivery of the vehicle. So, no. This is not just a Tesla issue as 2019 Bolts even if they are delivered before Sept 10, will not get the rebate.

So, is it possible to get a class action lawsuit going, for owners of EVs who had placed down payments prior to July 11? Any lawyers in the room want to take the case? I’ll be the first to sign on!

Thank your lucky stars coal-fired power plants are not coming back.

Nope – they have high priced Nuclear instead (where the uranium cost is a tiny expense to the entire operation), and they even have one WOOD PELLET plant fueled by imported Scandinavian Pellets. I’m glad you enjoy paying your electricity bill. Of course, if you own a SOLAR installation in Ontario, you’re getting a BONANZA as I’ve explained previously, paid for by the forced generosity of your neighbors.

I want to know who the hell comes on this page and downvotes a comment like that. I mean, REALLY? You want coal? I get that for some people on this page it’s mostly about the energy independence thing, but no one can seriously want to charge their car on coal power, can they? Did they just slip with the mouse? Sausage fingers on a small phone screen?

YUP, I’m sad they closed down the big Coal power plant in my town, whose ‘dangerous effluent’ (Plant Food) I’ve been breathing my entire life.

You have no right to assume that your opinion is the only legal one. Try not to stomp your feet too much.

Apparently, more voters in Ontario think like me than think like you.

No he got to govern because was able to bring other parties in the fold. That is much better then 2 party system of the us and a simple majority these days compare to the 90s where the rules were always 2/3 in the senate to get laws and budgets through congress into the executive branch to sign and implement or get veto. It also control populism of the house and mob rule game to protect the minority’s party, but those good days are all gone and I blame Ried and democrats for that. He wanted to Push the nuclear option of simple majority to get lower courts filled and McConelle told him not to that democrats will regret it later.

Can Canda take him to court since it’s National Mandate or can parliament enact the laws to override Ontario’s since it’s a national agenda

The federal gov’t doesn’t have to take him to court. The decision has been made at the federal level that those provinces which don’t develop a cap and trade policy on their own will have one imposed from above. There’s going to be a real shoot out in the OK corral between feds and some provinces over this one.

Seems places such as Alberta may have something to say about this.

Even Alberta has seen the light and implemented a carbon tax. It’s low, sure, but it’s there in principle. Saskatchewan and now Ontario are the real drivers behind this fight, as far as I can make out.

All they are really hoping to do is stall things until 2019 and hope that Trudeau doesn’t get voted back in.

We can only hope. –> Elizabeth May for PM! <–

So a province and federal fight will coming then

I’ve sold items, worked day and night, bought and installed my home charger and borrowed money for my Tesla and placed my order well before July 11th. Still waiting for delivery targeted for August (which satisfies the September 10th deadline), this news is heartbreaking. I simply cannot afford this car without the incentive; now I’m caught in limbo unsure of what to do next and anxiety is kicking in.

That seriously sucks, dude. Write a letter to your MPP. Yours is exactly the kind of story that needs to be heard by the government.

It’s already in the news. The pressure is on.

Look on Facebook. There were dudes who contacted their campaign to confirm their rebates would be honoured and they were told yes. Subsequently they found out as you did hat there’s no rebate. To me this is borderline illegal.

This decision to exclude an individual manufacturer for their innovative approach to sales is inexcusable. This is not about who can afford these vehicles, it is about phasing out incentives responsibly. This government has failed many Ontarians who will find themselves in a greater financial difficulty as a result. Setting realistic deadlines to end incentives is reasonable; not honouring conditions where a verified contract was entered into is unreasonable. Especially when some are being honored. This government needs to make a swift correction and move forward.

I think the government is simply realizing that this electric adventure is taking too long and is not having the results expected. So it’s not worth the tax payer money for a few simple reasons. 1. manufacturers are not as committed as as they expected. they have one or two models available, mostly very compact cars that simply won’t fit for families. they are basically making compliance cars for the enthusiasts who want to see the future right now. their financial bottom line is still tied to gas vehicles. 2. since the supply is low, sales are barely 1% and prices are not going down. so the rebates effectively go to people with higher income who can actually afford these cars. if you want an SUV, the only choice is a Tesla model X at 110K which is ridiculous. If you look at the Outlander PHEV at 45K with a 12kwh battery, this rebate is money spent on a car with a tiny electric battery that will use gas most of the time and have close to no positive impact on the environment. I have an order in for a Tesla model 3 in Quebec and hope I get it… Read more »

I am not sure you are kidding or not with most of what you wrote. Obviously, obviously …. to make manufacturers start doing the right thing, to scale productions up and eventually bring parity to pricing, there needed to be and still need to be incentives and policies supporting the shift/disruption … call it whatever you want. Or do you honestly believe that the free market will take care of it??? … (eye roll)

Also, to suggest, that Tesla (or any other EV manufacturer) prices their cars knowing all buyers get some rebates from governments, is just ridiculous opinion and as far from a fact as Trump is on any single given day.

I still wonder whether you made to write this with a flavor of satire, reasoning the informed decision the fearless leader of Ontario has made, and somehow, one cannot be sure.

We can debate whether 7K for 12kWh battery PHEV is too much … but that is not what your reply came out over all as.

Sucks to be you people who get rebates. Sucks to be a fool who didn’t finance the EV without the rebate and then of you get it what a bonus! My own opinion is you have to finance the EV as if you will not get the rebate and then of you do get it, so much better. But I live in a place without rebates, so totally mute point for me. Now, I disagree with the whole rebate situation. If you want to transition off ICE then increase the taxes on using them, maybe through a carbon tax, maybe just a straight increase in petrol pricing, doesn’t matter you have to penalise people for using the ICE. It’s very well known what the effects of the ICE is over a broad spectrum of areas, so just get on with it and introduce disincentives that address those risk areas. That sends a clear message to both consumers and manufacturers. Low income people will be forced into either EV or smaller, more efficient ICE. Rich people either get an EV or pay the higher cost for their large, inefficient ICE. Extra income from ICE can be used to build the EV… Read more »