‘Teslorattis’ — as Tesla owners are wont to call themselves — might want to stock up on their EV of choice before October 1 lest the price of their favourite takes off higher than a SpaceX rocket.That’s when the federal government will begin adding 100% to the already inflated price of a Model Y bringing the $53,990 base model up to a whopping $108,000 before GST.In addition to being Canada’s best-selling EV it also happens to be the only one made in China available in this country, manufactured at its ‘gigafactory’ in Shanghai.Add a few options like a bigger battery, hi-fi sound system and self driving features, and the final tab comes closer to $150,000..That compares to about $60,000 for the Ford F-150 Lightning and $54,000 for the Mustang Mach-E.Tesla is reportedly so worried about the looming price hikes that it has lobbied the Liberal government for a reduction similar to what it received in Europe — or about 9% — according to anonymous sources quoted by Reuters.Tesla doesn’t disclose its Chinese exports, however vehicle identification numbers show both the Model 3 compact sedan and Model Y SUV as originating in China. In fact, almost half of all Teslas made world wide come from China.By contrast, Tesla has never shipped Chinese-made models to the US.Finance Minister Chrystia Freeland, who is responsible for implementing the tariffs, didn’t respond to requests for comment on what was being described as a negotiation.Canadian imports of Chinese-made cars jumped 460% to 44,300 units last year, when Tesla began shipping EVs from its Shanghai factory through the Port of Vancouver.Some have speculated Tesla could skirt the surtaxes by shipping the cars to the US and reimporting them into Canada under the USMCA free trade agreement. Likewise, some have speculated Chinese makers could set up shop in Mexico and ‘tariff-jump’ the Canadian market from there..While Chinese EV maker BYD — ‘Build Your Dreams’ — has applied to open a Canadian operating division, the Tesla is presently the only Chinese made EV available in Canada. Others, like the Volkswagen i4 and Mercedes evo 2 are made in Germany; the Rivian is made in Illinois.Other legacy automakers with factories in China include Volvo and BMW which makes the EV Mini Cooper there — although neither have been introduced into Canada.Purely Chinese vehicles often have to be modified to meet Canadian safety standards.Nonetheless, half of all EVs sold globally originate from China, according to Simon Fraser University economist Jon Axsen.“The majority of battery cells are being made there, the majority of EV production is occurring there, and then the majority of sales are occurring there,” he said.That said, he told the Canadian Press it’s unclear how much market share purely Chinese-made EVs could capture in North America, which is dominated by pickup trucks and SUVs.“I think Chinese manufacturers would have a long road to go really to meet the consumer needs in North America,” he said.
