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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Tesla has reportedly received 50,000 orders for the new Model Y with an updated design in about 24 hours, according to a new report in China.
Last week, Tesla unveiled the mid-cycle refresh of the Model Y in China and a select few markets supplied by Tesla’s factory in Shanghai.
Deliveries are expected to start in March. The new Model Y hasn’t launched in Europe or North America yet, but it is expected to in the coming months.
The update has received mixed reviews as the updated design is not as well received as the Model 3’s recent design refresh and the specs and feature upgrades are basically in line with the Model 3 refresh.
But Tesla has reportedly received a significant number of orders for the updated electric vehicles.
According to several reports from Chinese bloggers claiming to have information coming from Tesla salespeople (via Car News China), the automaker secured 50,000 Model Y orders on the first day of the design refresh unveiling.
It’s hard to assess how significant this is for Tesla. The automaker delivered about 480,000 Model Ys in China in 2024 – up about 5% year-over-year.
50,000 units would represent just over a month of orders in a single day, but the design refresh was anticipated for about a year. Therefore, there was a lot of pent-up demand for it as people waited for the update to order.
It’s also worth noting that one of the sources claimed that Tesla is guiding that new orders being placed now won’t get delivered until April or May, which was used as evidence supporting the number of orders.
However, Tesla’s Chinese Model Y configurator is still mentioning March deliveries for new orders being placed now:
That’s true for both versions of the new Model Y. Tesla has yet to launch the updated performance version the new electric SUV.
Electrek’s Take
I wouldn’t be really surprised if Tesla secured 50,000 orders for the new Model Y in China, but I would still take this report with a grain of salt. Tesla salespeople have extremely limited visibility into sales beyond their own locations, and the sources appear to be coming from them and are relayed by Chinese bloggers on social media.
That, combined with the fact that the configurator still mentions March deliveries, makes me have doubts.
With that said, 50,000 orders is also not an unbelievable number.
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The rugged new electric SUV will be here before you know it. Jeep is fast-tracking Recon EV production as it prepares for an upcoming launch. Here’s what to expect from Jeep’s new electric SUV inspired by the legendary Wrangler.
Just as Jeep’s first global electric SUV, the Wagoneer S, is arriving at US dealers, the brand is already preparing to introduce another EV.
The Recon was revealed in 2022 as part of Jeep’s new strategy to become “the leading electrified SUV brand” in North America and Europe. Although Jeep launched the Avenger in Europe in early 2023, the Wagoneer S and Recon will be the brand’s first EV models to roll out globally.
The Recon will be Jeep’s first true off-road electric SUV. It’s built from the “ground up to be 100% Jeep 4×4.”Jeep said the new EV is for “those who love to explore extreme adventures in near silence.”
Jeep maker Stellantis said the Recon is “inspired by the legendary Wrangler.” Like the iconic off-roader, it will feature options like removable windows and doors.
With an expected launch just around the corner, Jeep (Stellantis) is reportedly fast-tracking Recon EV production.
When is Jeep launching the Recon EV?
According to MoparInsiders, a source at Stellantis’ assembly plant in Mexico claims production for the new Jeep Recon EV is set for February 24, 2025.
That’s well ahead of expected. After recently introducing the Wagoneer S and Dodge Charger Daytona to the market, Stellantis aims for a smooth launch with the new Jeep Recon EV.
Ahead of its official debut, prototypes of the rugged electric SUV have been spotted in public testing several times. A Recon EV was caught in Michigan with almost no camouflage by the folks at JeepReconForum last month. Inside, a display screen showed a range of 147 miles at 66% charge.
Although that suggests a range of around 223 miles, the production model is expected to be closer to 300 miles. Like the Wagoneer S, which features over 300 miles of driving range, the Recon EV will also be based on Stellantis’ STLA Large platform.
Jeep’s off-road electric SUV will be equipped with its signature Selec-Terrain system, which includes Rock, Mud, and other modes. It will also include standard four-wheel drive for added off-road capabilities. The Recon is expected to pack between 450 to 600 hp with dual EDMs.
According to the report, the Jeep Recon EV will launch in three trims: Willys, Overland, and an even more rugged Moab model.
We caught a glimpse of the Moab trim in 2023 after images leaked out of a dealer event. Over the past few months, the Recon EV has been spotted in public with less and less camouflage.
As it gets closer to production, Jeep’s upcoming electric SUV looks more like a Ford Bronco with a rugged exterior design.
Prices and official specs will be revealed closer to launch, but the Jeep Recon EV is expected to start at around $60,000. More expensive trims, like the Moab, could cost about $80,000. Stellantis will launch the Recon this year in the US and other global markets like Europe, The Middle East, and Asia.
What do you think of Jeep’s Wrangler-inspired Recon? Would you buy one for around $60,000? Drop us a comment below and let us know.
Source: MoparInsiders
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The world’s largest EV maker is making a big statement overseas. In a historic win, BYD officially outsold Toyota in EV sales on its own home turf for the first time last year.
BYD EV sales in Japan topped Toyota in 2024
After squeezing legacy automakers out of China with its low-cost electric cars, BYD is making a strong push into overseas markets.
BYD introduced its first electric vehicle (EV) in Japan in early 2023, the Atto 3. Starting at around $30,000, this SUV competes with popular domestic cars like the Toyota RAV4 and Honda CR-V. It also rivals other EVs on the market, like the Toyota bZ4X and Nissan Ariya.
In its first full sales year, BYD has already outsold Toyota in EV sales in Japan. This accomplishment is even more impressive since Toyota has historically dominated sales in its home market.
According to the Japan Automobile Dealer Association (via CarNewsChina), BYD sold 2,223 EVs in 2024. In comparison, Toyota sold just 2,038 electric cars in its home market last year.
BYD’s EV sales were up 54% compared to 2023, while Toyota’s slipped 30% year over year (YOY). Since launching in 2023, BYD has introduced several top-selling models, including the Dolphin hatchback and Seal sedan.
Starting at just 2.99 million yen ($19,000), the Dolphin competes with top-selling domestic cars like the Toyota Prius and Nissan LEAF.
After launching the Seal last June, widely viewed as its answer to the Tesla Model 3, BYD’s electric sedan was already the top-selling imported EV in Japan by August. BYD’s Seal starts at 5.28 million yen, or around $33,500.
BYD is turning up the pressure in 2025 with plans to launch the Sealion 07 in Japan, its new smart mid-size electric SUV.
Japan’s total EV sales fell 33% to just below 60,000 in 2024, its first YOY decline in four years. Nissan led the market with a roughly 50% share despite LEAF sales slipping nearly 50% (30,749) from 2023. Although Toyota bZ4X sales were up 10%, only 1,012 models were sold in 2024. Toyota’s electric SUV starts at 5.5 million yen ($35,000).
Electrek’s Take
After losing significant market share in China, a critical market for Japanese automakers, BYD is now taking their home market by storm.
Although it’s still a small number, BYD’s growing presence in Japan is impressive. Japan has been a challenging market for foreign brands to compete in. Outside of luxury automakers like Mercedes-Benz, Porsche, and BWM, domestic brands have historically dominated auto sales in Japan.
Toyota accounted for over a third of the market alone last year. After topping Nissan and Honda for the first time in global vehicle sales last year, BYD is laying the groundwork for more growth in 2025.
The Chinese EV leader is expanding with new models launching in Europe, Southeast Asia, Central and South America, and more. Will BYD eventually top Toyota in global sales? As the industry shifts to EVs, BYD is quickly gaining momentum while Toyota lags in key markets.
Source: CarNewsChina, JAMA
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