Reddit Tesla has increased the prices of its Model 3 and Model Y vehicles in Canada by $1,000 across the board, making them ineligible for the federal government’s $5,000 iZEV (Incentives for Zero-Emission Vehicles) rebate, reports Tesla North. The updated prices for the Model 3 are as follows: Long Range RWD: $55,990 (previously $54,990) Long Range AWD: $60,990 (previously $59,990) Performance AWD: $70,990 (previously $69,990) For the Model Y, the new prices are: Long Range RWD: $60,990 (previously $59,990) Long Range AWD: $64,990 (previously $63,990) Performance AWD: $69,990 (previously $68,990) The federal iZEV rebate that applies towards hybrids and electric vehicles requires a starting price below $55,000 for sedans and $60,000 for SUVs, disqualifying all Tesla Model 3 and Model Y variants after the price hike. If you placed an order before this price hike, your Tesla pricing remains safe and will be honoured still. The federal government recently announced that funding for the iZEV program is running out and will not be replenished. The program could end before March 31, 2025. In addition, Quebec announced in December it plans to suspend its EV rebate programs in February and April of this year, due to insufficient funds. This includes rebates for both electric vehicles and home charger installations. The price increases come as Tesla prepares to release a refreshed Model Y, which recently launched in Asia-Pacific markets. However, due to Canada and the U.S. imposing tariffs on EVs manufactured in China, Tesla vehicles made at the Shanghai Gigafactory likely won’t be coming here. Canadians are expected to receive the updated Model Y from Tesla’s Fremont factory in California instead.