Tesla Hikes Prices 22% in Canada to Beat Tariffs

Tesla has raised the prices of its vehicles in Canada and is urging buyers to purchase before retaliatory tariffs come into effect. This move follows the broad tariffs imposed by the Trump administration on Canadian goods, including those within the scope of the United States-Mexico-Canada Agreement (USMCA).

The price increase and the push to sell existing inventory before the tariffs take effect are strategic moves by Tesla to mitigate the financial impact of the new tariffs. By raising prices, Tesla aims to offset the additional costs that will be incurred due to the tariffs. Encouraging buyers to purchase before the tariffs are implemented helps Tesla to clear its inventory and avoid potential losses from unsold vehicles that would be subject to higher import duties.

Tesla's Canadian website featured a banner encouraging buyers to "hurry and select a pre-tariff priced vehicle while inventory lasts." This initiative comes after the Canadian government announced retaliatory tariffs in response to the U.S. tariffs, which include a 25% tax on automotive parts produced outside the USMCA region. The new tariffs are designed to match the U.S. tariffs in scope and impact.

As of April 26, new orders on Tesla's website for certain models, such as the long-range all-wheel-drive Model 3, were priced higher than the same models listed as inventory. For instance, the new order price for the Model 3 was 79,990 Canadian dollars (57,700 USD), while the inventory price for the same 2025 model year was approximately 69,000 Canadian dollars. This price difference reflects Tesla's strategy to clear its inventory before the tariffs take effect.

Tesla has not responded to requests for comment. However, professional websites have reported that certain models, such as the all-wheel-drive Cybertruck, have seen a 22% increase in cost for Canadian buyers due to the price hike. This move by Tesla is part of a broader strategy to manage the financial impact of the new tariffs and maintain profitability in the Canadian market.

Tesla's actions in Canada highlight the broader impact of trade tensions on the automotive industry. The imposition of tariffs can lead to increased costs for manufacturers, which are often passed on to consumers in the form of higher prices. This can affect consumer demand and purchasing decisions, as buyers may be deterred by the increased costs. Tesla's proactive approach to managing the impact of tariffs demonstrates its commitment to maintaining profitability and market competitiveness in the face of external challenges.