Tesla’s Canadian customers are facing significant price increases across all models.
If you’re used to Tesla lowering prices on its EVs, this news may come as a surprise. Electric has reported that Tesla is reversing course and raising prices across its entire Canadian lineup.
The Outlook for EVs Across the Border is not Promising
The situation for EVs in Canada is worsening, as the government plans to eliminate its federal EV incentive program. Quebec, a leader in EV sales, is expected to follow suit and end its own incentive program. The removal of these incentives, combined with Tesla’s price increases, could hinder EV adoption rates in Canada.
The Tesla Model 3 Performance will experience the largest price increase of $9,000, followed by an $8,000 rise for the Model 3 Long Range AWD. Other Tesla models and trims will see a $4,000 increase. Here’s the breakdown:
- Model 3:
– Long Range RWD: $4,000
– Long Range AWD: $8,000
– Performance: $9,000
- Model Y: $4,000
- Model S: $4,000
- Model X: $4,000
Buyers with a referral code, like the one from Electrek, can still receive CAD$1,300 off a new Model Y, Model S, or Model X, though this discount doesn’t fully offset the increased MSRPs.
Tesla Hasn’t Given an Official Reason, But We Can Speculate
While Tesla hasn’t provided an official explanation for the price increases, Electrek suggests that the significant devaluation of the Canadian dollar against the US dollar could be a key factor. Additionally, President Donald Trump’s proposal to impose 25% tariffs on imported Canadian goods might also play a role, especially since Canada has indicated it will respond in kind.
Despite Being Neighbors, Our EV Markets Are Vastly Different
In contrast, the U.S. EV market strategies differ significantly. Before leaving office, the Biden administration allocated $635 million to enhance charging infrastructure.
Tesla has been providing various incentives, such as free charging and discounts, to promote Cyber truck sales. The stainless steel Cyber truck entered the Canadian market in November with a hefty MSRP of CAD$138,000. Fortunately, this model did not see a price increase, but given its high price tag, it likely didn’t need one.
Conclusion
With global EV adoption slowing and countries planning to withdraw their incentive programs, Tesla’s price increase in Canada comes at an inopportune time. The automaker is already facing challenges from domestic and Chinese competitors, which may exacerbate their situation. It remains unclear how this will impact their profits and whether it is merely a reaction to tariff threats.
