Tesla Increases Car Prices in Canada Amid Tariff Concerns

Tesla has raised car prices in Canada, warning buyers to purchase before retaliatory tariffs on U.S.-made vehicles take effect. The price hike affects some models, with costs rising by up to 22% for Canadian buyers. Tesla has not commented on the increase, which follows Canada's announcement of import taxes on U.S.-made vehicles. The move comes as CEO Elon Musk plans to dedicate more time to the company.

Tesla (NASDAQ:TSLA) has announced a price hike for some of its models in Canada, warning buyers to purchase before retaliatory tariffs on U.S.-made vehicles take effect. The price increase, which ranges up to 22% for Canadian buyers, follows Canada's announcement of import taxes on U.S.-made vehicles. Tesla has not commented on the price hike, which is set to take effect shortly.

The move comes as CEO Elon Musk plans to dedicate more time to the company, following a 71% drop in Tesla's profits in the first quarter of 2025. Musk's association with President Trump and his work with the Department of Government Efficiency (DOGE) have been cited as factors contributing to the company's declining sales. Musk will step away from his work with DOGE next month to refocus his efforts on Tesla [3].

The price hike is a strategic response to potential tariffs that could significantly impact Tesla's operations in Canada. According to Goldman Sachs, the tariffs could reduce Canada's GDP by 1-4% and add inflationary pressure of up to 2% [2]. The tariffs are part of a broader trade strategy by the Trump administration, which has also targeted Mexico and China.

Tesla's stock has been the subject of various research reports, with analysts offering mixed opinions. Royal Bank of Canada has lowered its price target on Tesla from $314.00 to $307.00, suggesting a potential upside of 19.72% from the current price [1]. Despite the mixed ratings, Tesla's stock has an average rating of "Hold" and an average target price of $283.24 among analysts.

References:
[1] https://www.marketbeat.com/instant-alerts/tesla-nasdaqtsla-price-target-lowered-to-30700-at-royal-bank-of-canada-2025-04-23/
[2] https://www.benzinga.com/government/regulations/25/04/44972893/trump-says-us-doesnt-need-canadian-cars-hints-tariffs-could-rise-we-dont-want-your-cars-with-all-due-respect
[3] https://www.greenvilleonline.com/story/news/local/2025/04/24/tesla-earnings-fall-71-car-sales-drop-can-you-buy-a-tesla-in-sc/83256996007/