Tesla offers discounts in Canada/Mexico, raising demand concerns
Tesla is now offering a $5,000 CAD/$74,750 MXN credit on Model 3 and Model Y vehicles purchased in Canada and Mexico before the end of this year. It’s a rare instance of Tesla offering discounts, and could be a sign of softening demand in North America.
The move comes just after Tesla increased the year-end discount to $7,500 in the neighboring US.
Tesla refers to the discount as a “credit” on their site, though the accompanying “Learn More” link merely describes the specifics of the recently announced supercharger credit, available since December 15, and omits any specifics about the credit:
Tesla is offering free Supercharging credits* — up to 10,000 kilometers of driving—for customers who take delivery of a new Tesla vehicle between December 15 and December 31, 2022. Free Supercharging will be credited to your Tesla Account in the month of January 2023 and will remain valid for a period of two years from your delivery date.
But inventory car prices do not show this credit as being applied already, as seen in the screenshot below:
The middle car, at $59,990 CAD, shows the same price as a custom-order configured car with the same base model specs. So inventory cars can expect an additional $5,000 CAD discount beyond the listed pricing on the website, but we don’t know exactly how that “credit” will be applied. You’ll have to ask your Tesla salesperson for the specifics.
The Canadian and Mexican discounts are almost identical to Wednesday’s additional US discount. Both convert to roughly $3,750 USD, which is the amount Tesla raised the US discount by.
In the US, this discount was largely thought of as a response to changing EV tax incentives. It had previously been expected that Teslas would qualify for $3,750 in EV tax credits next year due to the Inflation Reduction Act, but the Treasury announced Monday that they are delaying new rules, which means Teslas will now qualify for $7,500 in tax credits at least until some time in March. As a result, buyers might delay purchase for a few weeks to get new tax credits, so if Tesla wants to sell cars now, it makes sense to offer a temporary discount.
But Canada and Mexico do not have a similar tax credit change coming at the start of the year, so the discount in those territories must not be associated with that. Which means this could be a signal that Tesla sees a less-crowded order book than usual in this holiday season, and needs to spur interest by dangling a rare carrot in front of buyers.
Tesla often has end-of-quarter and end-of-year pushes for deliveries, shifting employee focus to delivering cars for the last few weeks of a quarter in order to finish out strong with high numbers. The company has stated for years that they would like to stop doing end-of-quarter delivery pushes, but that effort never really materialized and the company continues the practice basically every quarter.
These pushes usually materialize in the form of an all-hands motivational e-mail (with gratuitous use of the word “hardcore”) from CEO Musk, but he’s a little distracted from Tesla at the moment. Tesla also occasionally offers perks like free supercharging to get customers in the door at the end of the year. But now, we’re seeing a rare instance of Tesla offering discounts on their vehicles to motivate buyers to come in.
Tesla vehicles have received several price increases over the last year, likely due to increased supply chain costs and generally soaring EV demand overall. With EV supply being lower than demand, prices of many EVs have gone up.
But the auto market is finally starting to stabilize in the last few months, with new and used car prices starting to flatten out from their previous upward trend.
So this new discount doesn’t make up for this year’s price increases, but at least it’s a reversal of the recent trajectory of Tesla prices. That said, it is only temporary – or maybe it’s a sign that Tesla’s price increases have gotten a little overzealous and the company may need to correct in the opposite direction as a result of softening demand in North America.
Electrek’s Take
As Fred mentioned in his Take for Tesla’s original $3,750 US discount, Tesla has never really had trouble with demand, and has never needed to offer discounts as a result. He mentioned that his sign for waning Tesla demand would be when Tesla starts offering discounts.
The US discounts seem like a response to tax credit changes, and could be explained away thusly.
But this discount can’t be explained away as a response to changing government incentives. It doesn’t apply to Europe or Asia, only to North American cars, which incidentally are all produced in the same North American factories. It seems likely that Tesla may have too much NA inventory and wants to get some of it off their hands, and turned into cash, before it shows up on balance sheets at the end of the fiscal year.
Or maybe Tesla wanted to align pricing across territories – but if so, then why no discount in Europe, and why only $3,750 USD (equivalent) and not $7,500?
The move also comes amid falling popularity for the brand due to CEO Elon Musk’s recent shenanigans.
This could be a sign that Tesla demand, which has consistently risen at incredible rates for so many years, might at least be rising less quickly than it previously has.
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Environment
Ford’s new Universal EV Platform is a game changer that will unlock $30,000 electric cars
Ford claims its new midsize EV pickup will have a lower cost of ownership than a Tesla Model Y and more space than a Toyota RAV4. Starting at $30,000, it will also cost about the same as the RAV4. Here’s how the new Ford EV Universal Platform will make it happen.
Ford reveals new affordable Universal EV platform
Ford’s big bet is about to pay off. The company is preparing to launch a family of affordable electric vehicles based on the new Ford Universal EV Platform.
The first vehicle based on the platform will be the promised midsize four-door electric pickup. Ford’s new EV pickup will start at around $30,000 and will be assembled at its Louisville Assembly Plant.
Based on the new Ford Universal EV Platform, it will also have more passenger space than the latest Toyota RAV4.
“We took a radical approach to a very hard challenge: Create affordable electric vehicles that delight customers in every way that matters – design, innovation, flexibility, space, driving pleasure, and cost of ownership,” Ford’s CEO Jim Farley said during the event in Kentucky.
According to Farley, Ford is done with the “good college tries” from other Detroit automakers to make affordable EVs, promising the company’s new platform will change the game by lowering costs and optimizing efficiency.
Ford is the first automaker to build prismatic LFP batteries in the US, which will not only cut costs but also free up interior space.
Farley explained that the new platform reduces parts by 20% compared to the average vehicle. It also has 25% fewer fasteners, 40% fewer worstations dock-to-dock in the plant, and 15% faster assembly time.
Perhaps, most importantly, Ford’s leader explained that it will help reduce costs for owners. Farley claimed that the new Ford Universal EV platform will enable “lower cost of ownership over five years than a three-year-old used Tesla Model Y.”
How so? For one, it’s significantly more efficient than the first-gen Ford EVs. The wiring harness alone in the new midsize truck will be 4,000 feet shorter and 10 kg lighter.
The LFP batteries lie flat under the floor, which improves handling, creates a quiet ride, and “provides a surprising amount of interior space,” Ford said. In fact, it will have more passenger room than the latest Toyota RAV4. And that’s not even including the added Frunk and truck bed.
Doug Field, Ford’s Chief EV, digital, and design officer, said the company took inspiration from the Model T to make it more than just a utility vehicle.
Ford promises that the new electric pickup will also be fun to drive, with a targeted 0 to 60 mph time as fast as the Mustang EcoBoost, and even more downforce.
The company will release additional information for the midsize electric pickup soon, including a reveal date, final prices, range, battery sizes, and charge times.
Ford said it’s aiming for a starting price of around $30,000, with customer deliveries set to begin in 2027. The company invested around $5 billion into its Louisville Assembly Complex, creating nearly 4,000 jobs to deliver its new EV pickup and LFP batteries.
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Jeep said the Recon was “inspired by the legendary Wrangler,” but it looks more like a Ford Bronco. With its debut expected any day now, Jeep’s new electric SUV was spotted on a car carrier, revealing a familiar look.
Jeep’s new electric SUV is coming for the Ford Bronco
The Recon was one of four electric SUVs unveiled in 2022 as part of Jeep’s plans to become “the global Zero-Emission SUV leader.”
It started with the Avenger, a compact electric SUV in Europe, followed by the Wagoneer S, a larger, luxury model that’s rolling out globally.
Next up will be the Recon. Jeep’s new electric SUV is set to make its first official appearance by the end of the year, but we’re already getting a sneak peek at the Ford Bronco lookalike.
The Recon is “designed from the ground up to be 100% Jeep4x4 and 100% zero emission,” but Jeep promises it will offer much more. With Jeep’s Selec-Terrain traction control system and an open-air feel, it was expected to arrive as an electric sibling to the Wrangler, but the latest spy photos show it could take the form of a rival.
With its official debut coming up, Jeep’s new electric SUV was spotted on a car carrier with barely any camouflage, and it looks just like a Ford Bronco.
The new video from KindelAuto gives us our closest look at the Recon yet — and from what we can see, it’s shaping up to be one sharp-looking SUV.
Jeep actually took a jab at the Ford Bronco during the Super Bowl last year, previewing the Recon racing past a Ford Bronco on an off-road trail. At the end, Harrison Ford joked, “This Jeep makes me happy, even though my name is Ford.”
Jeep’s former CEO, Christian Meunier, claimed the Recon will have “the capability to cross the mighty Rubicon Trail, one of the most challenging off-road trails in the US.”
Perhaps, even more importantly, Meunier added that the electric SUV will “reach the end of the trail with enough range to drive back to town and recharge.
Jeep maker Stellantis filed a patent in May for a unique three-speed gearbox for electric vehicles, which could debut in the Recon. The new unit is designed to deliver enhanced off-road performance without compromising driving range.
Based on the same STLA Large platform as the Wagoneer S, the Recon is expected to arrive with a driving range of at least 300 miles. Like the Wrangler, it will likely be offered with several trims, including a Willys, Overland, and Moab model.
The Jeep Recon EV is scheduled to go on sale later this year as a 2026 model year. Prices are expected to start at around $60,000. More expensive trims, like the Moab, could cost upwards of $80,000.
What do you think of the Recon? Can Jeep’s new electric SUV go head-to-head with the Ford Bronco? We will learn more later this year. Check back for the latest.
Source: KindelAuto, JeepReconForum
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Tesla’s director of service for the North American market announced that he left the automaker after almost 9 years.
The talent exodus continues at Tesla.
Since a wave of mass layoffs last year, Tesla has been experiencing a talent exodus.
Here is just a short list of Tesla execs who left the company this year:
- David Imai: Director of Design; departed February 2025
- David Lau: VP of Software Engineering; departed April 2025
- Mark Westfall: Head of Mechanical Engineering (Tesla Energy); departed April 2025
- Prashant Menon: Regional Director (India); departed May 2025
- Vineet Mehta: Head of Battery Architecture; departed May 2025
- Omead Afshar: VP/Head of Sales and Manufacturing (North America and Europe); departed June 2025
- Milan Kovac: Head of Optimus Humanoid Robot Team; departed June 2025
- Jenna Ferrua: Director of HR; departed June 2025
- Troy Jones: VP of Sales, Service, and Delivery (North America); departed July 2025
- Pete Bannon: VP of Hardware Engineering (Chip Tech and Dojo Supercomputer); departed August 2025
Now, we need to add one more to the list: Piero Landolfi, Director of Service in North America.
Landolfi announced that he was leaving Tesla on LinkedIn yesterday:
After 8 3/4 years I have made the difficult decision to leave Tesla. It was hard because of the incredibly talented and passionate people that I had the privilege to work, sweat and laugh with as we were accelerating the world to sustainable energy, against all odds and in spite of what used to be the general beliefs about electric cars. It was hard because of the amazing products we build, the first principle thinking and the getting stuff done mentality that makes Tesla such an exciting place to work at. However, it is now time for my next adventure. This is the way.
The executive joined Tesla in 2016 to lead technical service operations, a time when the automaker was implementing “F1-inspired fast lanes” in its service operations.
He was later promoted to Director of Service for the North American market.
According to his LinkedIn profile, he has joined Nimble, a robotics company serving warehouses and e-commerce, as SVP of Operations. The company includes several former Tesla veterans in its leadership.
Electrek’s Take
The talent bleed continues. I want to emphasize that we are only reporting on the exec levels (C-level, VPs, and directors), but there are many more people leaving in key engineering and management positions.
I’m considering writing an article on those, as this talent exodus has been one of the main concerns about Tesla for a while.
For the longest time, Tesla’s ability to attract top talent has been its main advantage.
Looking at the comings and goings at Tesla over the last year, this is clearly not the case anymore.
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