Tesla is encouraging customers in Canada to purchase vehicles at pre-tariff prices while supplies last. This move comes as the company prepares to raise prices in response to tariffs imposed during the ongoing trade tensions between the U.S. and Canada.
Over the weekend, a message appeared on Tesla’s Canadian website urging buyers to explore inventory priced before the tariffs. The message highlights the urgency, stating these prices are available "while supplies last." A Tesla sales representative confirmed that these pre-tariff prices apply to all models imported into Canada before the tariff hikes took effect.
The backdrop of this pricing strategy is President Trump’s 25% tariffs on imported vehicles and parts, which remain in effect despite a recent temporary pause on most tariffs. In retaliation, Canada has also imposed a 25% tariff on U.S. car imports. As a result, Tesla is facing significant price increases for its vehicles in Canada, with some models seeing hikes as high as 22%.
For instance, the all-wheel drive version of Tesla’s Cybertruck now costs C$139,990, up C$25,000 from its previous price of C$114,990. The long-range Model 3 sedan has increased by 16% to C$79,990, while the long-range Model Y SUV has seen a 21% price jump to C$84,990.
These price hikes come at a challenging time for Tesla, which has reported a 13% drop in vehicle deliveries and a staggering 71% decrease in net profit over the last quarter. Analysts suggest that these struggles stem from various factors, including negative publicity surrounding Musk’s involvement with the Trump administration, an aging vehicle lineup, and stiff competition from companies like BYD in China.
In addition to the financial pressures, Tesla dealerships have faced protests and even arson attacks this year. During a recent earnings call, Elon Musk acknowledged the company’s challenges and indicated he would be dedicating more time to Tesla to help address these issues.
Despite the tariffs, Tesla remains somewhat insulated because it manufactures all vehicles sold in the U.S. at domestic plants. However, the company still relies on certain parts imported from abroad, including China. Recently, reports indicated that Tesla would halt shipments of parts needed for its upcoming Cybercab and Semi electric truck due to the tariffs.
As the situation evolves, Tesla’s strategy to promote pre-tariff prices may help them move inventory quickly before the price increases take full effect.