Tesla has drastically raised prices across its entire electric vehicle lineup in Canada, causing shockwaves in an already suffering market. Following the Canadian government’s decision to put a 25% tariff on automobiles imported from the United States, Tesla responded by passing the majority of the added costs directly to customers. As the American manufacturer encourages customers to look into limited “pre-tariff priced” inventory, concerns are growing about how these significant increases will impact Tesla’s sales performance in a country where the brand is already suffering boycotts, political reaction, and declining demand.
Massive Price Increases Across the Lineup
Tesla vehicles are now significantly more expensive. Prices increased by up to 22%, depending on the model. For example, the Model 3 Long Range All-Wheel Drive now costs $79,990, up from $68,990. The Performance version of the Model 3 now costs $89,990, up from $79,990. Interestingly, the Model 3 Rear-Wheel Drive is no longer available for purchase in Canada.
Model Y and Higher-End Models Also Affected
The Model Y Long Range now costs $84,990, a $15,000 premium over its prior price. This makes it the same price as the previous Model Y Launch Series, which came fully laden with options, including Full Self-Driving (FSD).
The luxury models have seen even steeper hikes. The Model S now starts at $133,990 (+$19,000), and the Model S Plaid is priced at $154,990 (+$18,000). Similarly, the Model X Long Range now costs $140,990, and the Model X Plaid has reached $161,990, both increasing by $19,000.
Tesla Cybertruck Sees the Steepest Price Jump
The Cybertruck Dual Motor AWD is now listed at $139,990, up by $25,000. The top-end Cyberbeast version has jumped to $167,990, marking a $30,000 increase, or about 22%. These hikes make the Cybertruck nearly unaffordable for most Canadian buyers.
To counter the sticker shock, Tesla is urging customers to buy from its pre-tariff inventory. A banner on Tesla’s website reads:
“Explore pre-tariff priced inventory while supplies last.”
These vehicles were imported before the tariffs and remain cheaper. Buying one could save customers thousands compared to placing a new order.
Impact of Trade Tensions and Boycotts
Tesla’s price increase is a direct response to the Canadian government’s tariffs. These tariffs were themselves a response to U.S. tariff hikes on Canadian goods. Relations between Canada and the United States have been bitter.
Many Canadians have boycotted US products, notably Tesla, following Elon Musk’s provocative statements. Even before the price hikes, Tesla was struggling in Canada. Inventory lots were already filled with unsold vehicles. Now, with the Model 3 starting at nearly $80,000 CAD, many believe demand could completely collapse.
Tesla Stops Custom Orders in Canada
Tesla has made a major change to its online shopping process in Canada. The company has stopped taking custom orders for almost all its models through its website. Last week, Tesla removed the option to custom-order the Model 3, Model X, and Model S in Canada.
Now, it has extended this change to all its models. When visiting Tesla’s website, Canadian customers now only see a “View Inventory” button. The “Order Now” button has disappeared, even for the Model Y and the Cybertruck. Trying to click “Order” from the top menu simply redirects buyers to the inventory pages.
Tesla’s Strategy: Clear Out Existing Stock
While the change has concerned some customers, it may not be as serious as it seems.
Tesla has a history of pushing customers to choose from existing inventory rather than creating custom orders. This allows the company to clear out cars that have already been made and are sitting in lots. However, it is worth mentioning that this is the first time Tesla has withdrawn the customized ordering option from all of its models in Canada. This shows that Tesla is heavily focused on lowering existing inventory, presumably due to recent slowdowns in Canadian sales.
Custom Orders Still Possible via Mobile App
There is still a minor workaround for consumers who want a personalized automobile. Tesla’s smartphone app still lets users visit the configurator and submit customized orders.
If you can’t find the precise model or specifications you’re looking for in the available inventory:
- Open Tesla’s mobile app
- Go to the “Order” section
- Customize your vehicle as usual
However, there’s no guarantee how long this loophole will remain open. Tesla could easily block the configurator on the app just as it did on the website.
Growing Tensions in the Canadian Market
This change comes at a tricky time for Tesla in Canada. Following the implementation of new tariffs, the brand has seen dwindling sales, political reaction, and price increases.
https://www.greendrive-accessories.com/blog/language/fr/elon-musk-merges-xai-with-x/Public opinion of Tesla and its CEO, Elon Musk, has also cooled. Given these problems, it’s no surprise that Tesla is changing its sales strategy. By increasing inventory sales, Tesla can move vehicles faster and avoid the costs associated with custom builds.
Tesla’s significant changes in Canada reflect a firm under siege. Every measure, from significant price increases to the suspension of custom orders, indicates an urgency to clear inventories and protect earnings. While Tesla is providing pre-tariff inventory as a temporary respite to consumers, the long-term picture is dismal. Higher pricing, political conflicts, and rising public unhappiness are making Canada a more difficult market for Tesla. It remains to be seen whether the brand can repair its reputation and stabilize sales in the country, but for the time being, Canadian buyers have fewer options—and far higher prices.
