Tesla hikes prices on its EVs in Canada amid tariffs, expect demand collapse

Tesla has increased prices across its entire electric vehicle lineup in Canada amid increase tariffs due to President Trump’s trade war.

The American automaker was already struggling to sell cars in Canada this year, but with these prices, we should expect a total demand collapse.

The last few months have been rough for Tesla in Canada.

Many Canadians have been boycotting American products due to Trump starting a trade war with the country and calls for the US to annex Canada.

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Tesla has been a specific target of US boycotts due to its CEO, Elon Musk, who helped Trump get elected by contributing more than $250 million to his campaign.

Canadians also had direct reasons to be upset with Tesla and Musk. For example, Tesla appears to have taken advantage of the pause of the federal Canadian EV incentive, and Musk said that “Canada is not a real country.”

For all of those reasons, Canadian EV buyers had already turned sour on Tesla for a few months, reducing sales. We see Tesla still having significant inventory in lots across the country.

Now, Tesla has increased prices on its entire EV lineup in Canada, seemingly due to increased Canadian tariffs on US products in response to the US implementing higher tariffs on Canadian goods entering the country.

The prices have increased by as much as 22%, making Tesla’s products unaffordable for the vast majority of Canadians.

Here’s the complete list of Tesla’s price changes in Canada today:

• Model 3 Long Range AWD
  • Old Price: $68,990
  • New Price: $79,990
  • Price Increase: $11,000 (16%)
• Model 3 Performance
  • Old Price: $79,990
  • New Price: $89,990
  • Price Increase: $10,000 (13%)
• Model Y Long Range AWD
  • Old Price: $69,990
  • New Price: $84,990
  • Price Increase: $15,000 (21%)
• Model S Long Range AWD
  • Old Price: $114,990
  • New Price: $133,990
  • Price Increase: $19,000 (17%)
• Model S Plaid
  • Old Price: $136,990
  • New Price: $154,990
  • Price Increase: $18,000 (13%)
• Model X Long Range AWD
  • Old Price: $121,990
  • New Price: $140,990
  • Price Increase: $19,000 (16%)
• Model X Plaid
  • Old Price: $142,990
  • New Price: $161,990
  • Price Increase: $19,000 (13%)
• Cybertruck Dual Motor AWD
  • Old Price: $114,990
  • New Price: $139,990
  • Price Increase: $25,000 (22%)
• Cybertruck Tri-Motor Cyberbeast
  • Old Price: $137,990
  • New Price: $167,990
  • Price Increase: $30,000 (22%)

Even if Tesla vehicles were eligible for EV incentives in Canada, the prices are now above most pricing restrictions to access the EV incentives.

The price increases only apply to new orders and new vehicles entering the country, which points to the tariffs being the reason for the increase, as inventory vehicles remain at the same prices.

Electrek’s Take

I believe that Tesla’s demand in Canada has been extremely low over the last few months, due to both the pause of the federal EV incentive program and the brand damage caused by Elon Musk.

However, I would now expect a total demand collapse for Tesla in Canada with those prices.

Who is going to pay $80,000 CAD for a Model 3? That’s $57,600 USD or $10,000 more than what it sells for in the US before incentives.

The only good news here is that it might finally help used Tesla prices a bit in Canada. They have been declining for months as owners are rushing to distance themselves from the brand.

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