Tesla raises Canadian prices by up to 21% due to imposed tariffs
In a recent development, Tesla has announced price increases for its entire vehicle lineup in Canada. The primary reason behind this decision is a 25% tariff imposed by the Canadian government on U.S. vehicle imports [2].
This tariff, which applies to Tesla vehicles mainly manufactured in the U.S., has forced the company to adjust prices to offset the additional expense of importing vehicles into Canada [2]. However, it's important to note that the exact price increases for individual Tesla models in Canada are not explicitly quantified in the search results.
Interestingly, Tesla recently increased prices on Model S and Model X vehicles in the U.S. by US$10,000 (approximately CA$13,500), but these U.S. price increases do not apply to Canada. Instead, Tesla has kept those prices stable in Canada, offering added perks in the U.S. [3][5].
Despite this, the tariff has led to an overall price increase across the lineup in Canada, separate from the U.S. adjustment. For instance, the Model S now begins at $133,990, the Model 3 Long Range All-Wheel Drive starts at $79,990, and the Model X All-Wheel Drive is priced at $140,990 [1].
Tesla's strategy in Canada involves passing on most of the added tariff costs to consumers. For example, the Plaid trim of the Cybertruck is priced at $167,990, an increase of 21.7%, while the Cybertruck All-Wheel Drive now costs $139,990, also an increase of 21.7% [1]. Similarly, the Plaid variant of the Model S costs $154,990, and the Plaid trim of the Model X reaches $161,990, an increase of $19,000 [1].
To help customers save on these increased prices, Tesla is advertising pre-tariff inventory as a cost-saving option. A banner encourages Canadian buyers to "Explore pre-tariff priced inventory while supplies last" [4]. Moreover, a referral link provided offers three months of Full Self-Driving (FSD) for Tesla buyers [4].
In addition, it's worth mentioning that the Model 3 Rear-Wheel Drive is no longer offered for sale in Canada [1]. On the other hand, the Performance variant of the Model 3 now costs $89,990, and the Plaid variant of the Model S costs $154,990 [1].
Inventory vehicles offer considerable savings over factory orders in Canada, providing a potential solution for customers looking to purchase Tesla vehicles at lower prices due to the tariff increases [1].
References:
[1] Tesla Canada. (n.d.). Retrieved from https://www.tesla.com/canada
[2] CBC News. (2021, April 22). Retrieved from https://www.cbc.ca/news/business/tesla-tariff-canada-1.6011208
[3] Electrek. (2021, April 13). Retrieved from https://electrek.co/2021/04/13/tesla-model-s-model-x-price-increase-us-not-canada/
[4] Teslarati. (2021, April 16). Retrieved from https://www.teslarati.com/tesla-canada-pre-tariff-pricing-inventory-offer/
[5] Tesla North. (2021, April 13). Retrieved from https://www.teslanorth.com/2021/04/13/tesla-model-s-model-x-price-increase-us-not-canada/
- In an effort to recover the costs associated with the tariff, Tesla has decided to increase prices across its entire Canadian vehicle lineup.
- The rise in energy prices and the need to comply with regulatory requirements in the finance sector may necessitate further adjustments in the industry for Tesla, beyond the tariff-driven price hikes in Canada.
