Tesla Cuts Model 3 Price in Canada to C$39,490 With China Supply Shift
The price drop follows Tesla sourcing Canadian Model 3s from Shanghai under a new 6.1% import quota.
Overview
- Tesla introduced a new Model 3 Premium Rear-Wheel Drive at C$39,490 and said first deliveries could begin in May or June 2026.
- Tesla reshaped the lineup by lowering the Performance trim to C$74,990 and discontinuing the Long Range option in Canada.
- Shanghai-built Model 3s do not qualify for Canada’s C$5,000 federal EV rebate because the program limits incentives to vehicles from free-trade partners.
- Canada now allows 49,000 Chinese-made EVs per year at a 6.1% tariff under a two-part quota, replacing the much higher duty applied in 2024.
- The new pricing creates a wide gap with U.S. costs, which points to the entry model coming from Shanghai while the Performance likely still comes from Fremont.