Tesla cuts the price of the Model 3 in Canada and launches a new Premium RWD version

Tesla has cut the prices of some versions of the Model 3 on sale in the Canadian market, and has also introduced a new version under the name Premium RWD. This new pricing strategy from the company is the result of the return to this market of Tesla vehicles from the Shanghai plant, after a period of dependence on US production due to changes in trade tariffs.

In 2024, Canada imposed a 100 percent tariff on electric vehicles imported from China. A decision that practically halted sales of the brand’s models coming from the Shanghai Gigafactory. Tesla then responded by sending units produced in Fremont (California) to the Canadian market.

However, the problems did not end there. Following the US tariffs on Canadian vehicles and parts imposed in April 2025, Canada applied reciprocal measures with a 25 percent tariff on automobile imports from the United States, which considerably raised the prices of Tesla vehicles in Canada. For example, the Model 3 Long Range AWD came to cost almost 80 thousand Canadian dollars, ultimately forcing the company to withdraw part of its stock of US-produced vehicles from that market.

Now, Tesla has taken advantage of a Canadian easing of tariffs: a temporary reduction to 6.1 percent for a maximum of 49 thousand electric vehicles imported from China per year. Thanks to this new regulation, Tesla has been able to sell the Model 3 Premium RWD at a starting price of 39,490 Canadian dollars -somewhat less than 25 thousand euros at the current exchange rate-. This price is 31 percent lower than that of the same model in the US market, where it is on sale from 42,490 dollars.

The Model 3 Performance within reach of tighter budgets

Additionally, the Performance version of the Model 3 has seen its price reduced by 17 percent, from 89,990 to 74,990 Canadian dollars. Everything indicates, however, that this version continues to be manufactured in California, while the new Premium RWD comes from China.

Despite its attractive price and offering excellent value for money compared with other competing vehicles, the downside for the Canadian buyer is that the Model 3 built in Shanghai is not eligible for the 5,000-dollar rebate offered by the country’s government as an aid for purchasing electric vehicles (EVAP), as there is no free trade agreement between Canada and China.

Tesla hopes that with this manoeuvre it will be able to regain lost ground in Canada, at least for a time. While some Chinese brands such as BYD are already planning to take the Canadian market by storm, even building a local production plant and opening around 20 dealerships next year.

Technical specifications of this car

SedanTesla Model 34 versions · from 36,990 €