Tesla launched on Friday the revamped iterations of its Model S and Model X in Canada, after trimming prices on its best-selling Model Y SUV.
The Model Y Long Range All Wheel Drive (AWD) is now priced from C$64,000 ($47,500), C$20,000 down from C$84,990 ($62,100).
Several costumers who haven’t taken delivery of their vehicle have shared on X that they’ve been notified by the brand via e-mail, saying that the order agreement will be automatically updated with the new price.
Prices for the Model 3 sedan and for the Cybertruck were not altered. The Model 3 is priced from C$79,990, according to X user DriveTeslaca. However, the Canadian website for the brand only shows inventory units available.
The page says costumers can “receive pre-tariff pricing on remaining inventory.” For the Toronto area, the cheapest vehicle starts at C$57,570, equivalent to $42,050.
At the same time, Tesla opened orders for its refreshed Model S and Model X flagships, which have been revamped last month.
The Model S is priced from C$139,990 ($102,300), while the Model X SUV’s prices begin at C$149,990 ($109,600).
In early April, Donald Trump imposed a 25% tariff on imported vehicles and auto parts, plus announcing country-specific reciprocal tariffs with a baseline of 10% to 35%.
A few weeks later, Tesla hiked prices across its lineup in Canada, with increases going up to C$25,000. Prices for the Cybertruck had a 21.7% increase, from C$114,990 to C$139,990.
By then, the Model Y’s prices were raised from C$69,990 to C$84,990 — making it the same price as the Launch Series Model Y, which had included the Full Self-Driving (FSD).
The FSD can be added at the time of vehicle purchase or bought later by Tesla owners. In Canada, it is available as a one-time purchase for C$11,000 or as a monthly subscription for C$99.
Earlier in January, the Elon Musk-led company had already increased prices by as much as C$9,000 on the Model 3 sedan, and by C$4,000 on Model Y, Model S and Model X variants.
The move was not explained by the company, which declined to comment on it when approached by Reuters.
However, the outlet noted that it came as Canadian PM Justin Trudeau said his government would be responding if the U.S. advanced with a 25% tariff on imports from Canada and Mexico in February.
Following a 90-day pause on the country-specific tariffs announced in early April, the U.S. President has now come back to the issue, extending the deadline from July 9 to August 1.
Donald Trump gave notice of new rates in letters sent to several countries, either agreed-upon duties from negotiations or higher tariffs for countries that didn’t make a deal.
Trump further threatened Canada with a 35% duty, as he blames its neighbor for not helping “stop the flow of Fentanyl” in the U.S.
The two countries, together with Mexico, currently have a trade deal — the UMSCA — according to which certain imported goods are exempt of tariffs. The agreement was signed in 2020.
Earlier this year,U.S. Commerce Secretary Howard Lutnick said that “USMCA parts will not carry tariffs, no change in that approach,” despite the 25% tariff already imposed on auto parts.
Auto parts that meet USMCA rules don’t have to pay the 25% tariff. However, Canadian-manufactured vehicles that don’t qualify for duty-free trade under USMCA could have their tariff raised from 25% to 35%.
Earlier on Friday, Transport Canada reported that it found no signs of fraud or misconduct by Tesla, following its investigation into the company’s rebate claims under the Incentives for Zero-Emission Vehicles (iZEV) program.
The iZEV program provides federal rebates of up to $5,000 per vehicle to encourage the adoption of electric vehicles across Canada.
The investigation started after Tesla submitted 8,653 rebate claims, totaling $43 million, over a single weekend in January — an unusually high volume that raised concerns for the authorities.
Tesla stated that the claims were for a backlog of deliveries, processed to ensure customers received their rebates before the program expired.
Officials examined whether the submissions complied with program rules, including eligibility criteria and pricing requirements.
Tesla was cleared of any wrongdoing, and the Canadian government will now release the $43 million in rebate funds that had been temporarily frozen during the probe.
However, Tesla will remain excluded from future iZEV programs, according to Drive Tesla Canada.
