Tesla has slashed costs on the Mannequin Y in Canada regardless of tariffs as gross sales within the nation have just about gone to zero over the previous couple of months.
Following President Trump’s reversal of a free commerce settlement with Canada from his earlier time period and the applying of tariffs on Canadian commerce earlier this yr, Ottawa has imposed a 25% “counter-measure surtax” on all passenger automobiles and lightweight vans originating in america since 9 April 2025.
This has significantly decrease availability of electrical autos in Canada, and it has principally killed Tesla’s gross sales out there, on high of name injury attributable to Elon Musk, who backed Trump and stated issues like “Canada is just not an actual nation.”
With Trump threatening a brand new 35% tariff throughout the board on items coming from Canada beginning August 1st, the state of affairs doesn’t look like getting into the best course.
Nonetheless, Tesla has determined to slash costs on its Mannequin Y in Canada.
Following the tariffs, Tesla elevated the worth of the Mannequin Y to $84,000 CAD, which is the equal of $61,500 USD or about $20,000 USD greater than the price of the Mannequin Y Lengthy Vary AWD within the US.
Just about, nobody ordered the automobile, and Tesla merely liquidated its stock in Canada, the place gross sales slowed to a crawl during the last quarter.
Now, Tesla introduced that it’s lowering the worth of the Mannequin Y by about $20,000 in Canada:
The Tesla Mannequin Y now begins at $65,000, about $20,000 decrease than it was yesterday, and solely the Mannequin Y Lengthy Vary AWD is obtainable.
This may very well be defined by Tesla importing the automobile from Gigafactory Berlin in Germany reasonably than the US.
The truth that Tesla is speaking about deliveries in “Sep – Oct 2025” for brand spanking new orders additionally means that the autos are coming from abroad.
Electrek’s Take
That is undoubtedly going to assist gross sales in Canada, that are at present just about non-existent. Tesla has 35 shops within the nation, they usually primarily function showrooms and repair facilities now.
Now, the tariffs weren’t Tesla’s solely drawback in Canada. The corporate suffered excessive model injury from Musk’s affiliation with Trump.
That’s anticipated to final, particularly now that Musk’s favorability ranking is at an all-time low.
However I’m certain that the tariffs had an even bigger impression on gross sales than model injury so we must always see Tesla return to delivering perhaps a couple of 1000’s models per quarter in Canada.
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