Tesla Model 3 Sells in Canada for 39,490 CAD After Trade Deal

Tesla has begun selling its Model 3 Premium Rear-Wheel Drive sedan in Canada at a record-low price of 39,490 Canadian dollars, nearly half the cost of previous entry-level models, following a bilateral trade agreement that reduced tariffs on Chinese-made electric vehicles.

The vehicles, produced at Tesla's Gigafactory Shanghai, went on sale around May 1, 2026. This marks the first import of Chinese-built Model 3s to Canada since 2024, when the country imposed a 100 percent surtax on such vehicles to protect North American automakers. Tesla had shifted to supplying cars from its Fremont, California, factory, but prices soared after Canada added a 25 percent tariff on U.S.-made vehicles in early 2025. The Long Range All-Wheel Drive model then reached 79,990 Canadian dollars, making it unaffordable for many buyers.

The price drop stems from a January 2026 trade deal negotiated by Prime Minister Mark Carney during a visit to Beijing. Canada lowered the tariff on Chinese electric vehicles to 6.1 percent, its standard most-favored-nation rate, in exchange for China reducing duties on Canadian canola seed, lobster, crab, and peas. The agreement includes an import quota of 49,000...