Tesla has begun providing different Model 3 and Model Y Long Range variants for its customers – dividing the two variants between those who are eligible for the $7,500 Federal EV Tax Credit, and those who are not eligible.
Eligible vs Non-Eligible Customers
Tesla is making two versions of their Long Range models of the Model 3 and Model Y available to customers in the U.S. One of them qualifies for the tax rebate, and the other doesn’t. However, there are some underlying differences between the two models customers should know.
Customers who claim they are eligible for the tax credit will be provided a VIN for a vehicle that qualifies for the EV Tax Credit. Vehicles that qualify for the Tax Credit have their battery and its cells manufactured in North America.
Customers who aren’t eligible or don’t opt to use the tax credit will get a VIN that doesn’t qualify for the federal credit. Customers who aren’t eligible for the federal rebate may still be eligible for local or state rebates, and these cars should be eligible for those specific rebates.
Panasonic vs LG Batteries
So what’s the difference between the two variants? It essentially comes down to the batteries and where they’re produced. The Model 3 and Model Y cars that are eligible for the tax credit will contain Panasonic batteries, which are produced in the U.S., while the cars not eligible for the rebate will include LG batteries.
They’re both non-LFP, 2170 cells, and while there isn’t a huge difference on the surface between the battery cells since they offer similar “regular” charging speeds and range, one does tend to be a little better. The LG batteries have been known to not charge as fast at level 3 chargers – which include Superchargers.
We recommend getting the vehicle that qualifies for the rebate that includes Panasonic batteries, even if you’re not planning to take advantage of the federal rebate. Besides getting a better battery, it leaves you open to receiving the tax rebate if circumstances change later in the year. It’s possible Tesla may offer a discount on the LG battery-powered model in the future, but at this time with them being the same cost, the Panasonic version makes more sense.
The Performance variant of the Model 3 and Model Y also comes with the Panasonic batteries. The LFP pack in the Rear-Wheel Drive variants of either vehicle also charge faster than the LG batteries.
The video below shows some of the speed differences between the battery packs.
How to View Cars
To view the vehicles with their specific battery packs, you’ll need to use Tesla’s inventory system. Simply go to the Inventory section of Tesla’s site, and then enable (Panasonic batteries) or disable (LG batteries) the Tax Credit Eligible Vehicles toggle on Tesla’s site.
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Tesla has announced steep price increases for its vehicles in Canada, with adjustments of up to CA$9,000 set to take effect on February 1, 2025. This move impacts nearly all models, with the Model 3 Performance trim seeing the steepest hike, rising from $70,990 to $79,990 Canadian. The Model Y, Model S, and Model X will each see a flat increase of CA$4,000 across all trims. Notably, the Cybertruck remains unaffected by these changes.
These price hikes coincide with the expiration of Canada’s federal EV incentive program, which previously offered CA$5,000 rebates on eligible vehicles, further increasing the price of Tesla vehicles.
Additionally, the Canadian dollar’s recent decline against the US dollar and looming trade tensions between the U.S. and Canada may have influenced Tesla’s decision. President Trump proposed a 25% tariff on Canadian goods, and Tesla may be expecting Canada to retaliate with a similar tariff on US goods. However, it’s interesting that Tesla has chosen to raise prices so drastically before any tariffs have been announced.
Price Increases
Model
Price Increase
Model 3 Long Range RWD
CA $4,000 ($2,800 USD)
Model 3 Long Range AWD
CA $8,000 ($5,600 USD)
Model 3 Performance
CA $9,000 ($6,300 USD)
Model Y
CA $4,000 ($2,800 USD)
Model S
CA $4,000 ($2,800 USD)
Model X
CA $4,000 ($2,800 USD)
Cybertruck
$0
Buyers
This could be a critical time to act for prospective buyers, with the price increase going into effect in just about a week. Tesla’s online configurator allows customers to lock in current prices by placing an order before February 1st. The company’s referral program also offers CA$1,300 off Model Y, Model S, and Model X purchases, providing additional savings before the price hike takes effect.
Expect these adjustments to impact Tesla sales in Canada, although they’re likely to affect other manufacturers as well. We may see a potential surge in orders ahead of the February 1 deadline, especially for the AWD and Performance variants of the new Model 3.
It’s not clear whether the price increase will impact the new Model Y, which was announced last night for North America and Europe. Deliveries for the new model begin in March.
If you’re on the fence about whether you should order a new Tesla, now may be a good time to place your order. Tesla offers the ability to cancel your order, but buyers would lose their deposit.
Tesla has officially launched the refreshed Model Y in North America and Europe, just 13 days after the launch for the Asia-Pacific Markets.
Just like the other markets, Tesla will be starting with the Launch Edition, which will include FSD and Acceleration Boost. It will also include other smaller details such as Launch Edition badging, puddle lights, special wordmark logos on the door sill plates, and wireless charging pads, as well as an exclusive textile trim and black vegan suede interior.
The new Model Y is available for pre-order immediately but will only begin shipping in March, which is surprisingly sooner than the market where it was initially unveiled. Due to the new model, Tesla has also begun to offer some compelling inventory discounts for the now, last-gen Model Y.
Pricing
Pricing for the new Model Y includes the Launch Edition package - similar to the Foundation Series Cybertruck pricing - a premium launch bundle that will give you a fair amount of additional features and get you earlier access to the new Model Y.
What’s unique with this launch is that color and wheel selection are included in the price - so you can choose from Stealth Grey, Pearl White Multicoat, Ultra Red, and Quicksilver for the colors without any additional fees. You can also pick from the 19” Crossflow wheels or the 20” Helix 2.0 wheels.
Not a Tesla App
Tesla did not announce the price for the non-Launch Edition versions of the vehicle. This includes the RWD, Long Range AWD, and Performance variants. We’ll likely see these launch in the coming months but expect Tesla to continue to sell the Launch Edition as long as there’s demand. Given that the Model Y is the world’s best-selling vehicle, it could be a while before we see a non-bundle version.
Tesla’s site currently only lists the new Model Y with its Long-Range All-Wheel Drive variant. The Long-Range Rear-Wheel Drive variant is currently unavailable in North America and Europe, but the specs are listed on the “Compare Models” page.
Model
Price (USD)
Price (CAD)
Price (EU)**
New Model Y LR AWD
$59,990
$84,990
€49,990
2024 Model Y Performance
$51,490
$73,990
€52,990
2024 Model Y LR AWD
$47,990
$68,990
€58,990
2024 Model Y LR RWD
$44,990
$64,990
€61,990
*Canadian Prices include the recent price increase.
**EU prices may vary by ordering nation.
The new Model Y comes in well above the price for the Performance variant of the previous Model Y. However, remember that this includes the $2,000 Acceleration Boost package, the $8,000 FSD package, and all of the other smaller add-ons. If you were already planning to buy the FSD and Acceleration Boost packages, it ends up being a decent deal, but the biggest attraction is the ability to get your Model Y much sooner.
Metallic infrared reflective coating on all glass for better heat reflection
Power-actuated second-row vents
One stalk for signaling. Shifting is now on the main screen.
The front-end view.
Not a Tesla App
Asia-Pacific Differences
RWD Variant: There are three key differences for the North American and European launches, versus the Asia-Pacific launch. First off, the Long Range Rear-Wheel Drive variant isn’t available for ordering at this time. That’s a pretty big hit - because it was the far more affordable version of the refreshed Model Y. With the new pricing forcing buyers to buy FSD and Acceleration Boost, making it more expensive than the Performance model, it could lead some buyers to hold off until the Launch Edition is over.
Glacial Blue: Second, the new color - glacial blue - isn’t making its way to North America or Europe at this time. In fact, the color palette for the Model Y appears to be limited to Stealth Grey, Pearl White Multicoat, Ultra Red, and Quicksilver.
Tow Hitch: Third - and honestly the most exciting - a class II tow hitch, capable of towing the same 3,500 lbs of weight, is available in North America and Europe, and it is included as part of the features for the Launch Edition.
With deliveries slated for March, we’re excited to see the first few arrive in North America and Europe arrive in the next 5-10 weeks. We’re sure the refreshed Model Y will be making its way to Tesla showrooms, as well as Auto Shows in both markets sometime soon - so stay tuned.
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