Tesla has slashed costs on the Mannequin Y in Canada regardless of tariffs as gross sales within the nation have nearly gone to zero over the previous few months.
Following President Trump’s reversal of a free commerce settlement with Canada from his earlier time period and the appliance of tariffs on Canadian commerce earlier this yr, Ottawa has imposed a 25% “counter-measure surtax” on all passenger vehicles and light-weight vans originating in the USA since 9 April 2025.
This has significantly decrease availability of electrical autos in Canada, and it has principally killed Tesla’s gross sales out there, on high of name harm brought on by Elon Musk, who backed Trump and mentioned issues like “Canada is just not an actual nation.”
With Trump threatening a brand new 35% tariff throughout the board on items coming from Canada beginning August 1st, the state of affairs doesn’t look like getting into the fitting course.
Nonetheless, Tesla has determined to slash costs on its Mannequin Y in Canada.
Following the tariffs, Tesla elevated the worth of the Mannequin Y to $84,000 CAD, which is the equal of $61,500 USD or about $20,000 USD greater than the price of the Mannequin Y Lengthy Vary AWD within the US.
Nearly, nobody ordered the car, and Tesla merely liquidated its stock in Canada, the place gross sales slowed to a crawl over the past quarter.
Now, Tesla introduced that it’s decreasing the worth of the Mannequin Y by about $20,000 in Canada:
The Tesla Mannequin Y now begins at $65,000, about $20,000 decrease than it was yesterday, and solely the Mannequin Y Lengthy Vary AWD is obtainable.
This might be defined by Tesla importing the car from Gigafactory Berlin in Germany reasonably than the US.
The truth that Tesla is speaking about deliveries in “Sep – Oct 2025” for brand new orders additionally means that the autos are coming from abroad.
Electrek’s Take
That is undoubtedly going to assist gross sales in Canada, that are at the moment nearly non-existent. Tesla has 35 shops within the nation, and so they basically function showrooms and repair facilities now.
Now, the tariffs weren’t Tesla’s solely downside in Canada. The corporate suffered excessive model harm from Musk’s affiliation with Trump.
That’s anticipated to final, particularly now that Musk’s favorability score is at an all-time low.
However I’m certain that the tariffs had a much bigger affect on gross sales than model harm so we must always see Tesla return to delivering perhaps just a few 1000’s items per quarter in Canada.
