Tesla has hiked up the prices of its Canadian electric cars by as much as 21% in some instances. The shift comes in reaction to additional tariffs on electric cars from some countries, putting on the cost of Tesla’s Canadian operations.
Tesla Hikes Vehicle Prices in Canada
The prospect of Canada’s Tesla customers buying new vehicles is going to cost a whole lot more as of today. Here is the updated pricing:
Model Y: A $15,000 Shock
The rear-wheel-drive versions of Model Y now cost $15,000 more than what was previously available. This dramatic inflation outran the reach of the Model Y from just about any middle-class buyer who was contemplating it as an affordable step on the ladder to Tesla ownership. The Model Y has for quite some time been one of the top models for Tesla in Canada, making this jump especially notable.
Model 3: Entry-Level Option Disappears
Major changes have also been made to the popular Model 3 series:
- Rear-Wheel Drive (RWD) Model: No longer available for sale.
- Long Range AWD Model: Now $11,000 more expensive.
- Performance Model: Sees a $10,000 price bump.
The cessation of the RWD form means that the affordable Model 3 variant is no longer accessible, introducing Tesla’s lineup further into premium territory.
Model S and Model X: Luxury at a Premium
Tesla’s premium models are also affected:
- Model S AWD: Increases by $19,000.
- Model S Plaid: Up by $18,000.
- Model X AWD: $19,000 pricier.
- Model X Plaid: Prices up by $19,000.
Both the Model S and Model X will still be classified as luxury when we consider that Tesla positioned them like that, and the new prices only provide solidification for that luxury tag. The people looking at these cars now have to all in at nearly or even above the $150,000 level.
Cybertruck: The Most Dramatic Increase Yet
The newly unveiled Cybertruck, that already a headline maker, has seen the largest price jumps:
- All-Wheel Drive (AWD) Version: Up by a staggering $25,000.
- Cyberbeast Version: Soars by $30,000.
Given that the whole world is waiting for the arrival of Cybertruck in Canada, these price changes will have a big impact on early adoption. Anyone who had reservations or held out in the hope of prices staying original U.S.-based pricing now has to retrench their decision.
Interestingly, Tesla’s website right now is redirecting the “Order” button to the Inventory page, which hasn’t been updated with the prices. Units already in Canada, and purchased before the tariffs change, are in effect, are still priced at their lower original fees.
This presents a limited window in which informed buyers can buy a Tesla at the old price before they disappear, but such stock is expected to be quickly depleted.
Conclusion
The price hikes come amid growing tensions over international trade policies and efforts by governments to shield their electric vehicle manufacturing industries. For a company that is all about being innovative and affordable (particularly with its more budget-friendly models), such as Tesla, this change could pose new challenges in Canada, especially as other competitors like Hyundai, Kia, and Ford prepare to crank up production of budget-friendly EVs in Canada.
Canadian consumers just got a dramatic shift in the market for purchasing a Tesla. Those who had been on the sidelines are now either in a mad dash to secure existing inventory or start looking for the next alternative.
