Tesla has officially secured provincial approval for the 2026 Model Y Long Range AWD, manufactured at the company’s Giga Berlin facility, to qualify for Quebec’s $4,000 electric vehicle rebate. This update, recently posted on Quebec’s Roulez-Vert program website, marks a significant win for Tesla—and a potential turning point for an EV market that has struggled throughout 2025.
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New Addition to Quebec’s List of Eligible EVs
The “AWD-B” Designation Explained
The new listing identifies the 2026 Tesla Model Y as the AWD-B variant, where “B” stands for Berlin, distinguishing it from North American-built models. This designation confirms that the vehicle meets all the criteria set by Quebec’s provincial subsidy program.
Financial Incentives for Buyers
Eligible buyers in Quebec can now receive a $4,000 rebate on the purchase of the new Model Y. For those opting to lease, scaled rebate amounts are available based on the duration of the lease term. The current Canadian base price of the Model Y is $64,990, bringing the cost to just over $60,000 for Quebec buyers after applying the provincial rebate.
Timing Is Critical: Quebec’s EV Market Faces Challenges
A Sharp Decline in EV Sales in 2025
The approval couldn’t have come at a better time for Tesla—or for the Quebec EV market. Despite leading the country in electric vehicle adoption for years, Quebec has not been immune to the 2025 EV sales slump. According to data from Statistics Canada, June 2025 saw a 35% year-over-year decline in national EV and plug-in hybrid sales, with just over 14,000 units sold across Canada.
Policy Shifts Behind the Decline
Several policy changes have contributed to the dip in sales:
- The federal iZEV program, which previously offered up to $5,000 in incentives, was discontinued earlier in 2025.
- Quebec’s own rebate program was paused for several months before being reinstated at a lower rate, dropping from $7,000 to $4,000.
- Ongoing uncertainty around government support has made both consumers and automakers more cautious.
Tesla’s Strategic Move: Switching from U.S. to German Imports
Avoiding Tariff Hikes with Giga Berlin Deliveries
Tesla had previously faced significant pricing challenges due to tariffs on U.S.-built vehicles, which inflated the cost of the Model Y for Canadian buyers. In response, Tesla shifted production for Canadian deliveries to Giga Berlin, avoiding U.S. tariffs and actually managing to lower the price of the Model Y in the process.
A More Competitive Offering in the Canadian Market
This shift not only helped reduce costs but also positioned the Berlin-made Model Y as a more accessible option for Canadian buyers—particularly those in Quebec, where price ceilings for rebates are strictly enforced.
What This Means for Quebec Buyers
Clarity and Confidence for Potential Tesla Owners
For Quebec residents who were holding off on purchasing a Tesla while awaiting official rebate confirmation, this announcement provides the assurance they needed. The 2026 Model Y AWD-B is now confirmed as rebate-eligible, allowing buyers to move forward confidently with their orders.
An Opportunity for Market Recovery
Tesla’s inclusion in the updated rebate list may also help stimulate EV demand in Quebec, offering hope for a rebound in one of Canada’s most important zero-emission vehicle markets.