Tesla to increase car prices in Canada amid taxes

According to news on its Canadian website, Tesla will increase the prices of all its automobiles in Canada from Feb. 1. The prices of the Model 3 will climb by as much as C$9,000 ($6,254.78).

Tesla has announced significant price increases for all its vehicles in Canada, effective February 1.

According to notices on Tesla’s Canadian website, the price hikes will impact all models, with the Model 3 seeing the steepest increase of up to C$9,000 ($6,254.78).

Price Adjustments by Model

• Model 3: Price increases of up to C$9,000.
• Model Y: Variants will see increases of up to C$4,000.
• Model S and Model X: All versions will rise by C$4,000.

Tesla has not provided an official explanation for the price increases, but the move raises eyebrows amidst trade tensions and existing tariffs.

Tesla’s Canadian Market and Tariff Challenges

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Tesla does not manufacture vehicles in Canada; instead, it imports cars from its production facilities in the United States and Shanghai, China. Canada imposes a 100% tariff on electric vehicle imports from China, which includes Tesla’s Shanghai-produced vehicles.

Additionally, ongoing trade uncertainty between the U.S. and Canada may be a factor in Tesla’s decision.

The announcement coincides with Canadian Prime Minister Justin Trudeau’s recent comments addressing potential 25% tariffs on imports from Canada and Mexico, reportedly being considered by U.S. President Donald Trump. These looming tariffs could further strain automotive trade between the nations.

Tesla’s Silence

Tesla has yet to comment on the reasons behind the price increase, and it remains unclear how much of its Canadian imports are sourced from Shanghai versus U.S.-based plants.

The price hike comes as a surprise and has prompted questions about how trade policies and manufacturing costs might be influencing Tesla’s pricing strategy.

For Canadian Tesla buyers, this price adjustment adds another layer of complexity in the already premium EV market.