Tesla raises prices in Canada by as much as 21% due to imposed tariffs
Tesla Offers Pre-Tariff Priced Inventory in Canada as Price Hikes Take Effect
Tesla, the electric vehicle manufacturer, is urging customers in Canada to explore pre-tariff priced inventory, available while supplies last, as the company implements price increases across its entire vehicle lineup in the country. The price hikes, which range from 10% to 21.7%, are a response to cost pressures, including tariffs and dynamic pricing strategies.
The Model 3 Long Range All-Wheel Drive now costs $79,990, an increase of $10,000, while the Model S begins at $133,990, an increase of $19,000. The Cybertruck All-Wheel Drive is priced at $167,990, reflecting a 21.7% increase. The Model Y Long Range is now priced the same as the Launch Series Model Y, which included every option, including Full Self-Driving (FSD). The Model X Plaid trim is priced at $161,990, an increase of $19,000.
Notably, the US-specific perks like the Luxe Package are not included in the Canadian price increases, making the price hikes more straightforward without bundled incentives.
In an effort to manage inventory effectively and maintain competitive pricing amid tariff challenges, Tesla has been reducing prices on some inventory models, especially in markets like Canada and Australia. For example, Tesla slashed Model Y inventory prices by up to $20,000 CAD after having raised prices earlier to cover tariffs on US-produced vehicles. This suggests Tesla is shifting production of certain models, like the Model Y, to avoid tariffs—moving manufacturing to European plants such as the one in Germany—and offering strong discounts on existing inventory to clear pre-tariff priced units.
Customers in Canada can find the pre-tariff priced inventory by visiting Tesla's online ordering pages, where a banner encourages them to "Explore pre-tariff priced inventory while supplies last." Inventory vehicles offer considerable savings over factory orders in Canada. The Model 3 Performance variant, for instance, is now priced at $89,990, while the Model X All-Wheel Drive is priced at $140,990.
The Canadian government has imposed a 25% tariff on US vehicle imports, leading to these price increases. The Model 3 Rear-Wheel Drive is no longer offered for sale in Canada. Tesla is advertising pre-tariff inventory as a cost-saving option for customers.
In an effort to bypass the 25% tariff on US vehicle imports, Tesla is offering pre-tariff priced inventory in Canada for select models, such as the Model 3 Performance and Model X All-Wheel Drive. This move in the industry is a strategic approach to manage costs in the face of financial pressures from tariffs and dynamic pricing strategies.
