Tesla has re‑entered the Canadian market with a Chinese‑built Model 3 Premium Rear‑Wheel‑Drive priced at $39,490 CAD. That translates to $29,000 USD, slashing the previous entry point by nearly half. The move restores an affordable option for buyers who were forced to pay close to $80,000 CAD for the base sedan before the price reset. It competes with legacy brands while Tesla’s range and tech pedigree.

The price plunge follows a shift in tariff policy. Canada had slapped a 100 % duty on Shanghai‑built EVs, then imposed a 25 % levy on U.S.-made cars after the Trump administration’s tariffs, inflating the Model 3’s cost. With the tariff now reduced to 6.1 percent, Tesla can ship Shanghai units again at competitive rates. Canadian shoppers can now expect delivery times comparable to domestic models, easing supply concerns.

Tesla also trimmed the top‑end Model 3 Performance, dropping it from $89,000 CAD to $74,990 CAD—about $55,000 USD. The discount does not qualify for Canada’s new Electric Vehicle Affordability Program, which excludes non‑Canadian‑built models. Nonetheless, the lower pricing significantly reshapes the market, giving Canadian consumers a genuine low‑cost EV alternative today.