Tesla is pushing back delivery timelines for Model Y Performance buyers in Canada by several months, a shift that coincides with Ottawa’s decision to slash tariffs on Chinese-made electric vehicles from 100% to 6.1%.
Customers who initially expected deliveries as early as February are now seeing windows extend into late spring or summer, according to multiple customers on X.
Tesla switched to importing Model Y vehicles from its Berlin factory after the United States imposed 25% tariffs on vehicles built at its Fremont, California plant.
The move allowed the company to cut Canadian pricing by approximately C$20,000.
However, Canada announced last Friday a new trade agreement with China in which the country will allow up to 49,000 Chinese EVs annually at 6.1% tariffs — a number expected to reach 70,000 in five years.
By 2030, half of the import quota must be priced at C$35,000 or less.
Tesla‘s Shanghai facility is one of the most efficient automotive plants in the world, completing one vehicle roughly every 30 seconds with a local-sourcing rate above 95%.
The factory contributes nearly half of Tesla‘s global deliveries.
First-Mover Advantage
Tesla is positioned to benefit from Canada’s new tariff policy more than any Chinese competitor — at least in the near term.
The Austin-based company already operates 39 retail and service locations across Canada, something the Chinese brands still don’t.
President Donald Trump endorsed the agreement last Friday.
“That’s OK, that’s what he should be doing,” he said at a short media briefing in the White House. “If you can get a deal with China you should do that.”
The deal drew sharp criticism from US Trade Representative Jamieson Greer, who called it “problematic for Canada,” and Transportation Secretary Sean Duffy, who said Canada would regret allowing Chinese EV imports.
Competitor Response
Geely Holding Group Co. said Monday that Canada’s tariff reduction represents a positive step for its North American expansion plans.
Lotus, Geely’s luxury EV brand, said the tariff cut would allow it to reduce prices for its Eletre SUV in Canada by approximately 50%.
Polestar, which quietly removed its entry-level Polestar 2 from its US website in April 2025 when 25% tariffs took effect, may also benefit from the policy shift.
Bloomberg Intelligence analyst Joanna Chen said earlier on Monday that Tesla, Volvo Cars, and Polestar are among the near-term winners from Canada’s new tariff policy.
