Tesla slashes Canadian prices – and launches new Model 3 Premium RWD
For background: this marks the first time that Tesla has sold any Chinese-made vehicles in Canada since the government introduced a 100-per cent tariff on Chinese EVs in 2024 – a move which brought sales of Chinese EVs in Canada to a virtual standstill. At the time, Tesla responded by deciding to source its Canadian stock from the company’s factory in Fremont, California, rather than from Shanghai as it did previously.
However, it seems that Tesla’s US operations have fallen foul of the tit-for-tat trade war prompted by the Trump administration’s tariff regime. Following the introduction of US tariffs on Canadian cars and car parts in April 2025, Canada launched reciprocal measures amounting to a 25 per cent tax on US vehicle imports.
As electrek reports, this had a damaging effect on Tesla’s business in Canada, with tariffs pushing the price of the Model 3 Long Range AWD up to $79,999 CAD ($58,759 USD). In response, the firm reportedly shipped its remaining US-built Canadian Model 3 stock back to the US. This decision was likely motivated by Canada’s decision to lower tariffs to 6.1 per cent on up to 49,000 EVs imported from China within one year – itself an embarrassing rebuke to President Trump’s ‘America First’ auto policies.
Model 3 Premium RWD – Canadian pricing and specs
It now looks as if Chinese-made EVs are back on the menu in Canada – at least where Tesla is concerned – as evident in the launch of a new Model 3 Premium RWD trim in Canada. With a competitive starting price of $39,490 CAD (approx. $29,000 USD), it is now $13,390 USD cheaper than in the USA, where it continues to retail for $42,490 USD – a 31 per cent price difference.
Tesla continues to offer the Model 3 Performance trim in Canada – which has also seen a price cut of 17 per cent from $89,990 CAD down to $74,990. Given that this is still $770 USD more expensive than in the USA, it suggests that the Performance variant continues to be sourced from Fremont.
| Performance AWD | Premium RWD | |
|---|---|---|
| Price | $74,990 CAD ($55,000~ USD) | $39,490 CAD (~$29000 USD) |
| Drivetrain | AWD | RWD |
| Range | 478km | 463km |
| Top speed | 262km/h | 201km/h |
electrek highlights that, given the comparable technical specs of the Premium RWD and the Performance AWD, as well as the fact that it undercuts the price of most comparable EVs locally, it seems that the new Premium trim offers significant bang-for-buck to Canadian customers. However, it’s worth noting that Shanghai-built Model 3 EVs are not eligible for Canada’s $5000 EV Affordability Program (EVAP) rebate, due to the lack of a free-trade agreement between Canada and China.
While Tesla should be able to capitalise on this position for some time, it may not last long as Chinese-owned brands look to expand their presence in Canada. BYD is said to be eyeing the possibility of building a new plant in Canada alongside plans for around 20 Canadian dealerships in the next year. With an increased Chinese presence north of the border, Canadian consumers could emerge as the real winners in this trade war – despite the White House’s best efforts to wrangle the Canadian EV market in its favour.
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