Tesla sales in Canada continue to struggle as the brand is facing another month of dropping sales in what was once a strong market.
According to the latest data via Automotive News, Canadian Tesla registrations have plummeted 67% year-on-year in 2025, down to just 9,000 units in the first half of the year. This compares to more than 26,000 in the same time period in 2024.
The precipitous drop can be attributed to a number of factors, most notably the removal of rebates at both the federal level, and provincial level in the two provinces leading the EV adoption curve in Canada, British Columbia and Quebec.
As part of an attempt to move vehicles and revive sales, Tesla slashed pricing on the Model Y to below pre-tariff pricing on Thursday, knocking $20,000 off the price, which should help move the needle for Canadian consumers. The lower price is thanks to Tesla importing Model Y from Germany to avoid the tariffs, which also explains why no other vehicles received a similar price drop.
Although some had hoped that cooler heads would prevail down south, the Trump Administration announced a sweeping 35% tariff on goods coming from Canada late last week. The Canadian government’s response should come in the next few weeks and could include additional tariffs on auto parts or automobiles.
The tariffs are one thing that Tesla needs to weather, but the brand reputation hit that they have faced in Canada due to Elon Musk is another. It is unclear if Musk will be able to win over the Canadian faithful anytime soon, and his quote that “Canada is not a real country” several months ago still weighs on the minds of many in the Great White North.
