Under NAFTA, cars that have been assembled in Canada, the US or Mexico need a minimum of 55% content to be from North America in order to be considered a "NAFTA vehicle" and be exempt of any tariffs, duties or taxes when sold in Canada, the US or Mexico. In Canada, that's 6.1% or over $2,000 on the base price of the Model 3.
The Model 3 was expected to be Tesla's first vehicle not to be slapped with the price bump thanks to Tesla's new '2170' battery cells manufactured in the US instead of Japan. Now it's official with a Model 3 Monroney Sticker being spotted and confirming that 50% of the parts are from US/Canada, and 25% from Mexico. In comparison, other electric vehicles have much fewer North American parts. Like the Chevy Bolt EV, which is assembled in Michigan, has only 26% US/Canadian content, according to its Monroney Sticker.
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