Tesla Starts Selling Chinese-Made Model 3s In Canada At The EV’s Lowest Price Ever

Tesla has lowered the bar for electric vehicle affordability in Canada with the latest Model 3 Premium rear-wheel drive option. Reintroducing its entry-level sedan to Canada, Tesla’s RWD variant for the Model 3 will start at $39,490 CAD, or about $29,000. That’s almost half the price of the previous entry-level price for a Model 3 in Canada, which started at CA$79,990, or about $59,000.

In the premium segment, Tesla also reduced the price of its Model 3 Performance for Canadian customers from $89,000 CAD to $74,990 CAD, or about $55,000. To explain this sudden change, we have to thank Tesla’s global supply chain and the ever-changing pricing situation across the world. Canadian residents were previously able to purchase a Model 3 made at Tesla’s Shanghai factory before 2024, but Canada ultimately imposed an additional 100% tariff on electric vehicles made in China. In response, Tesla decided to offer Canadian customers electric vehicles manufactured at its factory in Fremont, California. However, following the Trump administration’s tariff campaign, Canada instituted a 25% retaliatory tariff on U.S.-made vehicles, leading to a price tag of CA$79,990 on the most affordable Model 3 in Canada at the time.

In the latest change, Canada reduced tariffs on electric vehicles made in China to just 6.1%, allowing Tesla to once again ship its electric vehicles made at the Giga Shanghai factory to the country at more reasonable prices. It’s important to note that the Model 3 Premium RWD option is currently not covered by Canada’s new Electric Vehicle Affordability Program, which allows for an incentive of up to $5,000 CAD. Even though the latest incentive program recently came into effect, the new Model 3 does not apply since it is not manufactured in Canada.