Tesla’s once-dominant position in Canada took a dramatic hit in 2025, as a perfect storm of policy changes, trade tensions, and market shifts sent sales tumbling to their lowest level in years.
New registration data compiled from multiple industry sources shows Tesla delivered between 18,300 and 20,000 vehicles in Canada for the full year, down significantly from the roughly 55,000 units in 2024.
That works out to a 63–67% year-over-year decline, making Canada one of Tesla’s weakest major markets globally in 2025.
The damage was most severe in the first half of the year. Registrations between January and June came in at just 9,000 vehicles, down from more than 26,000 in the same period in 2024. Quebec was hit especially hard after the province paused its EV rebate program at the end of 2024 for several months, causing Tesla sales in the province to plunge nearly 85% in Q1 alone.
DesRosiers Automotive Consultants, an auto industry data firm, confirmed that Tesla’s Canadian sales fell by more than 60%, but also noted a partial recovery later in the year. That rebound came after Tesla began importing Model Y vehicles from Giga Berlin, which allowed the company to avoid U.S.-related tariffs that were applied to American-built vehicles entering Canada.
That shift was crucial. U.S.–Canada trade measures imposed in 2025 made Teslas built in Fremont (Tesla has never imported vehicles from Giga Texas into Canada) far more expensive, just as federal and provincial EV incentives were being reduced or eliminated.
The broader EV sector also struggled in 2025, but not nearly to the same degree. Zero-emission vehicle sales across Canada fell between 32% and 43% through the first three quarters of the year, according to Automotive News. Meanwhile, overall new-vehicle sales actually grew about 2%, reaching roughly 1.9 million units.
Globally, Tesla also faced a difficult year. The company delivered 1,636,129 vehicles in 2025, down about 9% from 2024. While Tesla does not publish country-level sales figures, this data shows Canada’s decline was far steeper than Tesla’s worldwide average, highlighting how uniquely difficult 2025 was for the brand north of the border.
By the fourth quarter, imports of tariff-free European Model Y vehicles helped stabilize sales, but the damage was already done. With incentives gone and trade barriers still in place, Tesla now enters 2026 facing a very different Canadian market than the one that powered its record-breaking 2024.
