If you had to guess where the Tesla Model 3 and Model Y are cheapest, you probably wouldn’t guess Tokyo.
Well, though, a combination of a weak Japanese Yen and national and city-specific subsidies makes Tesla’s two mainline models the cheapest Teslas in the world.
Tesla lists the Model Y at 5.7 million Yen, but after you apply national and City of Tokyo subsidies, the price drops to 3.6 million Yen. That is just over $32,000 CAD for the company’s most popular vehicle. The Model 3 comes in at 3.2 million yen after subsidies, or just over $28,500 CAD.
On Tesla’s side, the company has been aggressive in its marketing in the country as it tries to compete with Toyota, Nissan, Subaru, Mazda, Mitsubishi, and Honda in their home market.
The aggressive pricing and advertising seem to be working for Tesla. The company has already registered more cars in the first half of 2026 than in all of 2025; in Q2, Tesla registered a record 7,034 registrations.
With the new pricing and subsidies, we should see Tesla sales continue to grow in Q3 and Q4 and widen its significant lead over domestic Japanese car brands in the electric vehicle segment.
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