Tesla is enhancing electric vehicle accessibility in Canada through the introduction of the Model 3 Premium Rear-Wheel Drive edition. This base sedan variant is now available starting at 39,490 Canadian dollars, equivalent to roughly 29,000 U.S. dollars. The figure marks close to a 50 percent reduction compared to the earlier baseline price for the Model 3 in Canada of 79,990 Canadian dollars, about 59,000 U.S. dollars.
For upper-tier models, Tesla has similarly decreased the Model 3 Performance pricing for Canadian buyers, bringing it down from 89,000 Canadian dollars to 74,990 Canadian dollars, or approximately 55,000 U.S. dollars. This adjustment arises from Tesla's worldwide manufacturing network and ongoing changes in global trade barriers. Before 2024, Canadian consumers had access to Model 3 units produced at Tesla's Shanghai facility, but Canada then introduced a 100 percent levy on Chinese-origin electric vehicles. Consequently, Tesla pivoted to deliveries from its Fremont, California plant for the Canadian market. Later, amid tariff actions from the Trump administration, Canada responded with a 25 percent duty on U.S.-built cars, which drove the entry-level Model 3 cost to 79,990 Canadian dollars during that phase.
In the current update, Canada has cut the import duties on Chinese electric vehicles to 6.1 percent, permitting Tesla to supply vehicles from the Giga Shanghai site once more at significantly lower costs. Notably, the Model 3 Premium Rear-Wheel Drive does not qualify for Canada's new Electric Vehicle Affordability Program, offering rebates of up to 5,000 Canadian dollars. Although the initiative has recently taken effect, this Model 3 variant remains excluded as it is not manufactured domestically in Canada.