Tesla has significantly increased the prices of its entire electric vehicle lineup in Canada, citing higher tariffs as the primary reason. The price hikes range from 10,000 to 30,000 Canadian dollars, depending on the model and variant.
This move follows a recent escalation in trade tensions between the United States and Canada, with both countries imposing tariffs on each other’s goods.
The price increases are a direct response to Canadian tariffs imposed in retaliation for US tariffs on imported vehicles and components. President Donald Trump’s administration introduced a 25% tariff on cars and parts from countries outside the US, prompting Canada to implement similar measures on US-made vehicles.
As a result, Tesla has raised prices across its models to offset the increased costs associated with importing vehicles from the US to Canada.
For example, the Model 3 Long Range All-Wheel Drive now costs $79,990 CAD, up from $68,990 CAD-a $11,000 increase. The Model 3 Performance has risen by $10,000 to $89,990 CAD. The Model Y Long Range All-Wheel Drive saw a $15,000 increase to $84,990 CAD.
Higher-end models like the Model S Long Range AWD and Model X Long Range AWD have also experienced significant price jumps, with increases of $19,000 each, now priced at $133,990 CAD and $140,990 CAD, respectively.
The Cybertruck, Tesla’s futuristic pickup, has seen some of the largest price hikes. The Dual Motor AWD variant is now $25,000 more expensive at $139,990 CAD, while the Tri-Motor Cyberbeast has increased by $30,000 to $167,990 CAD.
To mitigate the impact of these price hikes, Tesla is promoting its “pre-tariff” inventory in Canada. The company has placed a banner on its Canadian website encouraging customers to “Explore pre-tariff priced inventory while supplies last.” This strategy aims to clear out existing stock before the full effects of the tariffs are felt, offering buyers a chance to purchase vehicles at lower prices.
The ongoing trade tensions and resulting price increases have already affected Tesla’s sales in Canada. Many Canadians have been boycotting American products due to the trade war, further complicating Tesla’s market position. With these new price hikes, Tesla faces the risk of a significant decline in demand, as its vehicles become less competitive in the Canadian market.