In a surprising move, Tesla has announced substantial price hikes across its entire vehicle lineup in Canada. Tesla has given some warning, saying the new prices will be effective February 1, 2025. The increases impact all models, with some trims seeing a jump of up to $9,000.
Tesla’s online configurator now has a banner announcing the price changes. While the banner only says prices will “increase up to”, we have learned the exact price increases for each model and each trim.
For the Model 3, the price increases range from $4,000 for the Long Range Rear-Wheel Drive (RWD) variant, up to a whopping $9,000 for the Performance trim.
The Model S, Model X, and Model Y fair a little better, but will still see substantial $4,000 price increases across all trims.
Here’s a breakdown of the price increases for each model and trim:
- Model 3 Long Range RWD: +$4,000
- Model 3 Long Range AWD: +$8,000
- Model 3 Performance: +$9,000
- Model Y (all trims): +$4,000
- Model S (all trims): +$4,000
- Model X (all trims): +$4,000
These increases mark one of the most significant price adjustments Tesla has made in the Canadian market in recent years, and come just over a week after Tesla increased prices on all Model 3 and Model Y trims by $1,000, a move that eliminated all Teslas from eligibility for the federal $5,000 iZEV rebate.
Potential Reasons Behind the Increase
While Tesla has not officially provided an explanation for the price hikes, the fact the price changes come into effect on February 1 gives us one clue. That’s the date President Trump has said he will impose 25% tariffs on Canadian goods coming into the US. While that by itself doesn’t impact Tesla’s prices in Canada, the Canadian government has said it will impose the same tariffs on goods coming from the US into Canada.
Another possible reason contributing to the price increases is the value of the Canadian dollar, which has dropped significantly in recent months against the US dollar.
Impact on Canadian Consumers
For prospective Tesla buyers in Canada, this price increase is significant, especially when you add in the loss of the federal rebate. Those considering a purchase may want to place their orders before the February 1 deadline to secure current pricing. Don’t forget to use a referral link to get an additional $1,300 off.
Given the substantial jump for certain Model 3 trims, particularly the Long Range AWD and Performance versions, this could prompt a surge in orders in the coming days. Additionally, the increase could impact Tesla’s eligibility for government rebates in certain provinces, as some programs have price caps that limit which vehicles qualify for incentives.
Customers looking to make a purchase before the increase should act quickly, as Tesla’s online ordering system locks in pricing at the time of purchase, even if delivery occurs after February 1.
