According to media reports, Tesla's Canadian website announced that starting from February 1, it will increase the prices of all its vehicles in Canada. Among the price hikes, the Tesla Model 3 will see an increase of up to 9,000 CAD (approximately 6,254.78 USD), while all versions of the Tesla Model Y, Model S, and Model X will see a price increase of 4,000 CAD.
This marks one of the most significant price adjustments Tesla has made in the Canadian market in recent years. Just over a week ago, Tesla raised the prices of all Model 3 and Model Y versions by 1,000 CAD, which disqualified all Tesla vehicles from the Canadian federal government's zero-emissions vehicle incentive program (iZEV), which provides a 5,000 CAD subsidy.
Tesla's price increase in Canada is expected to cause a surge in orders in the coming days. Consumers who wish to purchase before the price hike should act quickly, as Tesla's online ordering system locks in the price at the time of purchase, even if delivery occurs after February 1.
At the same time Tesla unexpectedly raises its prices in Canada, Canadian Prime Minister Justin Trudeau reiterated on January 21 that the Canadian government is ready to respond if U.S. President Donald Trump imposes a 25% tariff on products imported from Canada and Mexico, which is expected to take effect on February 1.
Although Tesla has not officially explained the reasons for the price increase, it may be related to tariffs. Another possible reason for the hike could be the Canadian dollar's continued depreciation in recent months, with the CAD/USD exchange rate seeing a significant drop.
Tesla has not responded to requests for comment regarding the reported price increase.
It's worth noting that Tesla does not produce cars in Canada but instead imports them from other factories. It is currently unclear how many vehicles Tesla has exported to Canada from its factories in Shanghai, China, and the U.S.
Additionally, Canada has followed the U.S. and the EU in imposing a 100% tariff on all electric vehicles imported from China, including electric and certain hybrid passenger cars, trucks, buses, and vans, as well as vehicles produced by foreign carmakers like Tesla in China.
