Tesla has introduced a new entry-level Model 3 in Canada, significantly lowering the price to $39,490 CAD, approximately $29,000. This marks a drastic reduction from the previous starting price of $79,990 CAD, which was around $59,000. Additionally, the price of the Model 3 Performance has decreased from $89,000 CAD to $74,990 CAD, about $55,000.
The changes come as Canada has reduced tariffs on Chinese-made electric vehicles to just 6.1 percent, enabling Tesla to resume importing its vehicles manufactured in Shanghai. Previously, a 100 percent tariff on Chinese-made EVs and a 25 percent retaliatory tariff on U.S.-made vehicles had led to higher prices for Canadian consumers.
Despite the new pricing, the Model 3 Premium Rear-Wheel Drive variant does not qualify for Canada’s recent Electric Vehicle Affordability Program, which offers up to $5,000 CAD in incentives, as it is not produced domestically.