Tesla fights the $10,000 Cybertruck luxury vehicle tax in Canada and wins by 330 pounds

When Tesla started sending out order memos to Cybertruck reservation holders in Canada and Mexico last week, the pricing range of its electric pickup raised some eyebrows up north.

The tri-motor Cyberbeast trim, for instance, can go all the way up to 220,000 Canadian (about 160,000 US) dollars, depending on the province.

That's because Canada adds a number of levies to а base price tag that is otherwise largely identical with what Tesla charges in the US. A quick look at the pricing structure that Tesla sent to Cybertruck reservation holders there reveals items like "federal air conditioner tax," an excise levy on car A/C units, and a small "tire fee" aimed to offset the recycling expenses.

On a base CA$165,990 Cyberbeast price, however, the Canadian government also charges CA$13,773 luxury tax, or more than $10,000 USD. This luxury tax was introduced back in 2021 for passenger vehicles, boats or planes that cost more than CA$100,000, and is either 10% on the whole tag, or 20% on the difference above CA$100,000, whichever comes lower.

Needless to say, all of these levies can make the Cybertruck up to 50% more expensive than in the US, so Tesla promised that it will do something. Over the weekend, the Cybertruck Vehicle Program Manager tweeted that Tesla is "working on fixing this," referring to the luxury vehicle tax.

It now seems to have found a solution, too. Besides its price range, there are no less than six criteria that a passenger vehicle sale has to conform to in order to be charged with a luxury tax. The Cybertruck ticks all those boxes, but misses one by a tad, the gross vehicle weight.

Tesla found the loophole, and asked the Canadian authorities to exempt the Cybertruck from the luxury vehicle tax based on its weight. Thanks to its stainless steel body and large 123 kWh battery, the total GWVR of even a Cybertruck with all-season tires is 8,883 pounds, which is 332 pounds more than the government's threshold for the luxury passenger vehicle tax.

Thus, future Cyberbeast owners in Canada can now expect their October deliveries knowing that they've paid US$10,000 less than the price their pickup originally launched at, though still way more than what the Cybertruck goes for in the US.

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