Tesla has lowered the price of the Model Y in Canada by $20,000, brining pricing back down to below pre-tariff levels. The lower price, and other indicators, point to Tesla deciding to import the Model Y from Giga Berlin to avoid the tariffs and higher prices.
On Thursday night Tesla updated their online configurator in Canada, now listing the Model Y Long Range All-Wheel Drive (AWD) for $64,990, down from the previous $84,990. This is also $5,000 below the price before the tariffs took effect in April 2025.
Along with the price drop, Tesla has also introduced the new Diamond Black paint option for Canadian buyers. This new colour was first introduced in April, but was limited to U.S. Now it is available north of the border as well as a $2,000 option.
While Tesla lowered the price of the Model Y, all of Tesla’s other vehicles in Canada have maintained their tariff-pricing and have seen no price reductions. This likely means that the automaker has decided to import the Model Y from Giga Berlin, which only produces the Model Y, to avoid the tariffs and restore some sales volume for the Canadian market.
As you are probably aware, importing vehicles built at Giga Shanghai is no longer a viable option after the Canadian government imposed 100% tariffs on all Chinese-made EVs last year.
Another factor pointing to Tesla now importing Model Y from Germany is the estimated delivery window. According to Tesla’s Design Studio, orders placed today can be expected to be delivered in September or October, an unusually long period compared to typical delivery windows from when vehicles are produced in the U.S..
Editor’s note: This article has been updated to reflect the pre-tariff price of $69,990.
