Tesla Increases Prices in Canada, Online Ordering Halts for New Vehicles
Tesla Adjusts Prices in Canada Amidst Tariff Changes
Tesla, the leading electric vehicle manufacturer, has announced price adjustments for its vehicles in Canada due to the new 25% tariff on electric vehicles imported from the United States.
The Model 3 Long Range All-Wheel Drive now starts at $79,990 CAD, a $11,000 increase from its previous price. The Model S All-Wheel Drive follows suit, with a new starting price of $133,990, a $19,000 increase. The Model X All-Wheel Drive and the Model X Plaid have also seen price hikes, with new starting prices of $140,990 and $154,990 respectively, both a $19,000 increase.
Interestingly, the Model 3 Rear-Wheel Drive has been removed from sale. The Model Y Long Range now costs $84,990, a jump of $15,000 that matches the previous Launch Series pricing. The Cybertruck All-Wheel Drive has also seen an increase in price, now costing $139,990.
In a move to offer buyers significant savings, Tesla is promoting "pre-tariff priced" vehicles that are still in stock. These vehicles could offer major savings compared to new builds, as the tariffs have increased the cost of imported vehicles.
Tesla's website now directs customers to use the Tesla app for new custom orders, possibly indicating that factory orders are mainly for existing Tesla owners. The company has shifted supply from the U.S. to Giga Berlin in Germany, which has allowed a significant price reduction for the Model Y. By July 10, 2025, the Model Y price dropped to around C$64,990, even lower than the pre-tariff price.
The shift in supply means that while sales nearly halted due to the tariff hike, the German supply has restored market balance and competitive pricing for Canadian consumers. The deliveries of German-sourced Model Ys are expected in September–October 2025.
These tariffs would increase Tesla's import costs, prompting the company to raise prices preemptively to cover anticipated expenses. The Canadian government plans to impose retaliatory 25% tariffs on US goods, including vehicles imported from Tesla's US factories.
| Vehicle & Pricing Aspect | Price (CAD) | Notes | |---------------------------------------|-------------------|----------------------------------------| | Pre-tariff Model Y LR AWD (U.S.-made) | C$69,990 | Before March 13, 2025 tariffs | | Post-tariff Model Y LR AWD (U.S.-made)| C$84,990 | March-July 2025, after 25% tariff | | Post-shift Model Y LR AWD (Germany) | C$64,990 | July 10 onward, supply from Giga Berlin|
This price trajectory illustrates tariffs’ direct impact on Tesla Canada prices and how Tesla mitigated it by changing production and supply chain sources. Other automotive tariffs, such as those on Chinese imports and Mexican/Canadian parts, have broadly raised vehicle prices by roughly 10–15%, sometimes much higher, but Tesla’s German supply move bucked the tariff-driven trend by reducing costs for Canadians.
Consumers can expect sales in Canada to slow down and dip due to these price hikes. However, the availability of pre-tariff priced vehicles and the upcoming deliveries of German-sourced vehicles offer some relief for those looking to purchase a Tesla in Canada.
The escalating tariffs have led Tesla to make adjustments not only in prices but also in production, as they are promoting pre-tariff priced vehicles and shifting supply from the US to Germany to offer significant savings. Despite the price increase for various models, the company's move to Giga Berlin has resulted in a reduction of the Model Y's price, marking a shift in the finance sector of the technology industry.
The Canadian finance sector, however, may face increased costs as the retaliatory tariffs on US goods, including those from Tesla, are expected to be imposed. Consequently, the industry's landscape will continue to evolve as companies adapt to these tariff changes.
