Tesla Model 3 Price Halved in Canada, Hits Global Low

Tesla has recently slashed the price of its Model 3 Premium Rear-Wheel Drive variant in the Canadian market, reducing the starting price from CAD 79,990 to CAD 39,490—a 50% drop that marks a historic low for the model in the country. Following this adjustment, Canada now offers the lowest global price for the Model 3, even undercutting prices in China. This price cut is primarily driven by two factors: first, revisions to the Canada-China trade agreement have lowered the import tariff on Chinese-made electric vehicles entering Canada from 100% to 6.1%; second, Tesla has shifted production for the Canadian market’s Model 3 from its Fremont factory in the U.S. to its Shanghai Gigafactory, which is Tesla’s lowest-cost manufacturing base globally. The move also responds to shifting market dynamics. In 2023, Tesla lost its position as Canada’s top-selling EV brand to General Motors. Additionally, Chinese automakers like BYD are poised to enter the Canadian market, prompting Tesla to implement aggressive price reductions to counter rising competition and regain market share.