China-Made Tesla Model 3 RWD Slashes Canadian Price to CAD 39,490 — Lowest Ever

Tesla has launched a new rear-wheel-drive Model 3 Premium variant in Canada, starting at CAD 39,490 (approximately USD 29,000)—marking the lowest price ever for this model in the Canadian market. The price reduction is primarily due to Tesla switching its supply source for Canadian-bound vehicles from its Fremont factory in California to its Shanghai Gigafactory. In 2024, Canada imposed a 100% additional tariff on Chinese-made battery electric vehicles (BEVs), prompting Tesla to temporarily halt exports of China-built Model 3s to Canada and instead supply the market with U.S.-made vehicles. However, in early 2025, Canada introduced a 25% retaliatory tariff on U.S.-manufactured vehicles, pushing the price of the Model 3 Long Range AWD variant up to CAD 79,990—a pricing strategy that proved unsustainable. Tesla subsequently shipped its remaining U.S.-built inventory back to the United States to prepare for the return of Shanghai-produced Model 3s to the Canadian market. A pivotal shift occurred in January 2025, when the Canadian Prime Minister reached an agreement with Chinese authorities: within an annual quota of 49,000 units, the import tariff on Chinese-made BEVs would be reduced from 100% to the standard Most-Favored-Nation (MFN) rate of 6.1%. Under this new framework, the China-built Model 3 Premium RWD has re-entered the Canadian market. The vehicle offers a range of 463 kilometers and accelerates from 0 to 100 km/h in 4.2 seconds. Simultaneously, the Model 3 Performance variant saw a 17% price cut, dropping from CAD 89,990 to CAD 74,990. Deliveries of new orders for the updated Model 3 lineup are expected to begin as early as May or June 2026.