Tesla will export Model Y vehicles from Shanghai to Canada for the first time in coming months, according to media reports Monday. TSLA stock edged lower, extending April's sell-off.
The global EV giant is set to sell a cheaper China-made version of the Model Y in Canada, Reuters reported Monday. The Model Y is Tesla's bestselling vehicle worldwide, and now the company is offering a rear-wheel drive trim in Canada that is more than $7,000 cheaper than the current long-range version in the market.
Tesla Shanghai has already started manufacturing the new Canada Model Y, with deliveries expected between May and July, according to Reuters. Tesla is looking to produce around 9,000 China-made Model Y vehicles for Canada this quarter, Reuters reported.
Both the China-made, rear-wheel drive and long-range Model Y will qualify for government incentives of around $3,690 on purchase or a four-year lease.
The new Canada Model Y has an EPA-rated range equivalent to 245 miles on a charge and a price tag of $44,275. Meanwhile, the U.S. entry-level Model Y, which has all-wheel drive, has an EPA-rated range of 279 miles and goes for $46,990. The U.S. Model 3 also qualifies for a $7,500 tax credit.
Until now, Tesla has delivered only U.S.-made Model Y vehicles to Canada. Tesla has slashed U.S. prices on Model Y trims three times so far in 2023 in an effort to drum up demand. Tesla Austin is still ramping up. The EV giant also plans $7 billion-$9 billion in capital spending in each of the next two years, according to recent SEC filings. In January, it expected 2023 capex of $6 billion-$8 billion.
Tesla Stock
TSLA shares dropped 1.5% to 162.55 Monday during market trade.
Tesla stock plunged 10.8% last week to its worst levels since late January. Most of the decline came Thursday, after Tesla reported its gross margin dived more than expected and Elon Musk signaled more declines could be coming.
TSLA stock has fallen more than 21% in April.
Tesla stock no longer has a base. If Tesla rebounds it could likely form a double-bottom base with a 207.89 buy point, according to MarketSmith analysis.
Tesla sits fifth in IBD's Auto Manufacturers industry group. TSLA has a 63 Composite Rating out of 99. The stock has also has a 26 Relative Strength Rating. The EPS Rating is 92 out of 99.
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