Tesla Quietly Raises Prices In Canada In Anticipation Of Tariffs

Tesla is set to raise the prices of its electric vehicles in Canada starting February 1.

Some models are expected to see increases of up to $6,200 (C$9,000). The adjustments will affect all models except the Cybertruck, according to a notice quietly posted on Tesla’s website earlier today.

The largest price jump will hit the Model 3 sedan, with its MSRP climbing by as much as $6,200 (C$9,000), depending on the variant. Other Tesla models, including the Model Y, Model S, and Model X, will see their prices rise by $2,750 (C$4,000) across the board.

Tesla has not provided a specific reason for the increase, but it may be tied to the looming tariff tensions between the United States and Canada. Canadian Prime Minister Justin Trudeau has indicated that his government is prepared to retaliate if U.S. President Donald Trump imposes 25% tariffs on imports from Canada and Mexico, a move that could significantly impact cross-border commerce.

The timing of Tesla’s price hike adds to the challenges for Canadian EV buyers. Just last week, the federal government’s iZEV program, which provided rebates of $3,500 (C$5,000) toward new EV purchases, was unexpectedly halted after its funding was exhausted. Originally slated to run until March, the program saw a surge in demand that depleted the fund early.

The Canadian government has set an ambitious target of ensuring all new cars sold in the country are electric by 2035. It's unclear if that target will remain realistic with the United States decoupling from the goal and automakers across the board shifting production plans.

For now, prospective Tesla buyers may want to move quickly before February’s price hikes take effect.

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