Tesla to Raise Canadian Vehicle Prices by Up to $9,000 Starting February 1

Tesla Inc. announced significant price increases for its Canadian lineup, effective February 1, 2025. The Model 3, Tesla’s most affordable vehicle, will see a price hike of $9,000, bringing its base price to $55,990 before freight and fees. Other models, including the Model Y, Model S, and Model X, will see increases of $4,000.

Details of the Price Increase

Tesla’s updated pricing appears on its Canadian website, affecting multiple models:

• Model 3: Base price increased by $9,000 to $55,990.
• Model Y: Base price raised by $4,000 to $60,990.
• Model S and Model X: Each sees a $4,000 increase, now starting at $110,990.
• Cybertruck: Pricing remains unchanged at $137,990.

Tesla has not officially explained the price hikes. However, the timing coincides with U.S. President Donald Trump’s proposed 25% tariffs on Canadian goods, adding to speculation that trade tensions may be influencing costs.

Federal Incentives No Longer Apply

Tesla’s previous $1,000 price increase in January pushed the Model 3 and Model Y out of eligibility for Canada’s $5,000 federal EV rebate. Transport Canada recently paused the rebate program after funding was fully allocated.

Quebec has also reduced its provincial EV rebates, cutting incentives from $7,000 in 2024 to $4,000 this year. The province plans to further reduce rebates until phasing them out entirely by 2027.

Other automakers, including Nissan, Hyundai, and General Motors, have stepped in with temporary rebates to offset the loss of federal incentives.

Tesla’s Global Manufacturing and Canadian Context

Tesla produces its vehicles in factories located in the United States, Germany, and China. Canadian tariffs of 100% apply to vehicles imported from China, including Tesla’s Shanghai-made Model 3 and Model Y. This adds further cost pressures for Canadian consumers.

Tesla’s Model 3 and Model Y from Shanghai account for a significant portion of global production. However, the exact number of units shipped to Canada remains unclear.

Key Implications for EV Buyers

The rising prices, combined with fewer incentives, may impact demand for Tesla’s vehicles in Canada. The increases place Tesla’s pricing above competitors offering their own rebates.

The next few months will show how these changes affect Tesla’s position in the Canadian EV market.

For more details, visit Tesla’s official Canadian website or consult local dealerships. The next price increase will take effect on February 1, 2025.

More…

• https://www.ctvnews.ca/business/autos/article/tesla-raising-prices-for-its-vehicles-in-canada-by-up-to-9000-starting-feb-1
• https://driving.ca/auto-news/news/tesla-canada-price-hikes-tariff-ev-musk
• https://www.thestar.com/business/tesla-raising-prices-for-its-vehicles-in-canada-by-up-to-9-000-starting-feb/article_0f83fae9-c377-5000-ba29-b69e008aa539.html