Tesla has lowered the bar for electric vehicle affordability in Canada with the latest Model 3 premium rear-wheel drive option. Re-introducing its entry-level sedan in Canada, Tesla’s RWD variant for the Model 3 will be priced starting at $39,490 CAD or about $29,000. That’s about half the price of the previous entry-level price point for the Model 3 in Canada, which started at $79,990 CAD, or about $59,000.
On a higher note, Tesla also dropped the price of its Model 3 Performance for Canadian customers from $89,000 CAD to $74,990 CAD, or about $55,000. To explain the sudden change, we have to thank Tesla’s global supply chain and the constantly evolving tariff situation around the world. Canadian residents were previously able to buy a Model 3 made at Tesla’s Shanghai factory before 2024, but Canada eventually imposed an additional 100 percent tariff on EVs made in China. In response, Tesla began offering Canadian customers EVs built at its Fremont, California factory. However, following the Trump administration’s tariff campaign, Canada imposed a 25 percent retaliatory tariff on US-made vehicles, bringing the price of the Model 3 to $79,990 CAD, the most affordable for Canada at the time.
In the latest change, Canada reduced tariffs on Chinese-made EVs to just 6.1 per cent, allowing Tesla to once again ship its EVs made at the Giga Shanghai factory to the country at more reasonable prices. It’s important to note that the Model 3 Premium RWD option is not currently included in Canada’s new electric vehicle affordability program that allows up to a $5,000 CAD incentive. Although the latest incentive program recently went into effect, the latest Model 3 does not apply because it is not made in Canada.
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