Tesla Model 3 in Canada
Image Credit: Tesla

Tesla Canada Sales Hit 16-Month High Ahead of China-Made Model 3

Tesla recorded approximately 3,800 vehicle registrations in Canada in April, according to data compiled by X user and data tracker Roland Pircher (‘piloly’).

The figure is up 150% when compared to a year ago, and more than doubled (+123%) from January, the first month of the previous quarter.

According to Pircher, last month’s figures represented Tesla‘s second-best April ever in Canada.

The monthly results were the strongest in 16 months, driven in part by changes to US-Canada trade policy and updates to Canada’s EV incentive program.

Ottawa suspended the incentives last September before reinstating them in February.

The last three months were up 45.5% compared to the November–January period.

In April, the Model Y accounted for about 58% of deliveries, while the Tesla Model 3 made up another 38%.

Despite the United States being the closest manufacturing hub for Canadian buyers, both models are currently being imported from outside the US.

Canadian customers can also order the Cybertruck — which continues to be built in the US.

Meanwhile, the flagship Model S and Model X were only available as remaining inventory in April — after Tesla ended production for both models at the close of March.

Canada EV Market

Canada’s EV market went through a sharp contraction in 2025.

The federal iZEV program — which had offered up to C$5,000 on eligible battery-electric vehicles — was shuttered last year after funds ran dry. For most of that year, Canadian consumers had no federal purchase incentive at all.

The effect was significant.

EV market share fell from roughly 14–15% in 2024 to approximately 9% in 2025, wiping out tens of thousands of units of expected demand nationwide.

Alongside the incentive gap, the trade dispute with the United States — which includes a reciprocal 25% tariff on vehicles and auto parts — made both brands and consumers wary of purchasing a vehicle.

The turning point came in early 2026, when Prime Minister Mark Carney’s government announced a major reset of Canada’s automotive and EV policy.

The centerpiece was the deal struck with China, under which Canada now allows up to 49,000 Chinese EVs to enter Ottawa for a lowered tariff of 6.1% — down from the 100% imposed in 2024 alongside the US.

Established automakers with production established in China — which includes Tesla, with the Shanghai plant producing both Model 3s and Model Ys — can benefit from the deal even before Chinese automakers enter the country.

At the same time, Carney launched an Electric Vehicle Affordability Program (EVAP) — a C$2.3 billion, five-year federal rebate scheme.

From February 16, buyers of eligible battery-electric and fuel cell vehicles could claim up to C$5,000.

The rebate applies to vehicles with a final transaction value of C$50,000 or less, manufactured in countries with which Canada has a free trade agreement.

US-made vehicles were explicitly excluded, given the ongoing tariff dispute. Rebate amounts decline year-over-year through 2030, making 2026 the most generous point in the program.

Canada’s EV rebate drove more than 24,400 sales in its first three months, with consumers claiming approximately C$122 million in incentives under EVAP through Transport Canada’s funding tracker.

Model Ys Sourced from Europe

Facing the 25% tariff on US-made vehicles, Tesla moved to supply Canada with Giga Berlin-produced Model Ys.

The first Berlin-built units arrived at the Dartmouth Autoport in Halifax, Nova Scotia in September 2025.

It marked the first time Tesla Canada had sourced directly from a European factory.

The move was made possible by the Canada-EU Comprehensive Economic and Trade Agreement (CETA), which eliminated most tariffs on imports from EU member states that have ratified the deal — Germany among them.

The European-sourced Model Y allowed Tesla to cut prices by as much as C$20,000 compared to the tariff-inflated figures previously in place.

With the price drop, the entry-level Model Y RWD fell below the C$50,000 EVAP transaction cap and became eligible for the federal C$5,000 rebate.

The effective purchase price dropped below C$45,000 for the first time.

Model 3s Sourced from China

On the Model 3 side, Tesla pulled US-made units from the Canadian market and replaced them with a Shanghai-built variant.

The Model 3 Premium RWD, imported from Giga Shanghai, starts at C$39,490 — the lowest price Tesla has offered on any vehicle in Canada.

Earlier this week, Quebec added the Shanghai-built Model 3 Premium RWD to its Roulez Vert eligibility list, opening up the province’s additional C$2,000 rebate for buyers there.

The Model 3 transition has not been without friction.

Following the spec change, Tesla faced criticism over reduced peak charging speeds and shorter battery warranty distances on the new variant compared to the US-built units it replaced.

The company has now required Canadian buyers to formally acknowledge the downgraded specifications before taking delivery.

Year-to-Date Up 50%

Through the first four months of 2026, Tesla‘s estimated Canadian sales are up roughly 50% over the same period in 2025.

Tesla has already reached approximately 41% of its full-year 2025 Canadian volume.

Pircher’s cumulative data shows 2026 tracking well above 2025 and approaching the pace of 2024’s stronger first half.

The broader Canadian BEV market has also recovered.

BEV penetration climbed back above 12% in March 2026 — the highest level since December 2025 — after a weak January.

Infrastructure Investment Continues

Tesla has continued to expand its physical footprint in Canada alongside the sales recovery.

In January, Tesla opened its largest Supercharger station in the country in Ajax, Ontario, completed seven months after construction began.

On Thursday, the company held an official ribbon-cutting ceremony at a new 50,000 sq ft service center in Markham, Ontario — the largest Tesla service facility in Canada to date.

Tesla‘s Full Self-Driving capability is also gaining visibility in Canada as, earlier this week, David Moss — the driver behind the first claimed zero-intervention FSD coast-to-coast run across the United States — began a coast-to-coast attempt across Canada.

Matilde is a Law-backed writer who joined CARBA in April 2025 as a Junior Reporter.