Tesla Increases Prices in Canada, Halts Custom Order Placements on Website
In a bid to offer significant savings to Canadian customers, Tesla is promoting pre-tariff priced vehicles still available on its homepage. These savings come from incentives on existing inventory and strategic sourcing from overseas factories to bypass the 25% import tariff on U.S.-made vehicles.
The Model Y, for instance, is currently available at a reduced price of roughly CAD $20,000 by sourcing it from Tesla's Berlin Gigafactory, as opposed to U.S. factories. Similarly, discounts on inventory Model Y units exceed $11,000 in some cases, making these pre-tariff or tariff-bypassed cars significantly cheaper than new U.S.-built models subject to the 25% import tariff.
However, these savings are temporary and linked to inventory clearance and production shifts. Current incentives such as free Supercharging on Model 3 inventory are part of Tesla’s aggressive Q3 2025 sales push and are not expected to extend beyond this period.
Sales in Canada are expected to slow down and dip due to the price hikes on new models. The Model 3 Long Range All-Wheel Drive now starts at $79,990 CAD, an increase of $11,000. The Model 3 Performance now costs $89,990 CAD, an increase of $10,000. The Model Y Long Range now costs $84,990 CAD, an increase of $15,000. The Model X All-Wheel Drive is now priced at $140,990, a $19,000 increase. The Model S All-Wheel Drive now starts at $133,990, an increase of $19,000. The Model S Plaid now costs $154,990, an increase of $18,000. The Cybertruck All-Wheel Drive now costs $139,990 (previously $114,990; up $25k). The Cyberbeast has jumped to $167,990 (previously $137,990; up $30k).
Tesla is directing customers to use the Tesla app to customize and order new vehicles, possibly restricting factory orders to existing Tesla owners. The inventory vehicles are available for a limited time, while supplies last.
It's important to note that the Canadian government plans to impose retaliatory 25% tariffs on US goods, including vehicles imported from Tesla's US factories. The price increases are likely due to Tesla's anticipation of increased import costs from the tariffs.
In conclusion, Canadians can benefit from substantial short-term savings through current incentives and tariff-avoiding vehicle sourcing, but these advantages depend on inventory availability and Tesla's evolving production mix. Once tariffs apply fully or inventory incentives end, savings compared to tariff-inflated new builds will diminish significantly.
The Model Y, sourced from Tesla's Berlin Gigafactory, is currently available at a reduced price due to strategic financing and technology in the global business landscape, while discounts on inventory Model Y units also offer substantial finance savings. However, these savings are temporary, as they're linked to industry-specific factors like inventory clearance and technology-driven production shifts.
