Tesla has announced that it will be increasing the prices of all its cars in Canada starting from February 1st. This move will see customers paying up to an additional $6,200 for their new Tesla vehicles.
The biggest price hike will be for the Model 3 sedan, with the MSRP going up by as much as $6,200 (C$9,000). Other models such as the Model Y, Model S, and Model X will see increases of $2,750 (C$4,000). The Cybertruck, however, will remain unaffected by these price changes.
The reason behind these price increases is not explicitly stated by Tesla, but it is speculated that it could be related to the potential tariff war between the United States and Canada. Canadian Prime Minister Justin Trudeau has indicated that the government will respond if U.S. President Donald Trump imposes 25% tariffs on imports from Canada and Mexico.
With the federal EV incentive program, iZEV, being completely exhausted last week, Canadian EV shoppers will need to reconsider their budgets when looking to purchase a new Tesla. The program, which offered $3,500 (C$5,000) towards the purchase of a new EV, was supposed to last until March but was ended early due to high demand.
In addition to the federal incentive program ending, Tesla had previously raised the prices of all Model Y versions in Canada by $700 (C$1,000). These recent MSRP increases, coupled with the lack of incentives, may lead shoppers to explore other options for their electric vehicle needs.
Despite these challenges, there are still some Canadian provinces that offer rebates for purchasing a new EV. Provinces like Yukon, New Brunswick, and Prince Edward Island offer rebates of up to $3,500 (C$5,000). British Columbia, Manitoba, Nova Scotia, and Newfoundland and Labrador also have incentive programs that can help reduce the cost of a new EV.
It is important to note that some of these regional incentive programs have end dates as early as March and operate on a first-come, first-served basis.
Looking ahead, Canada aims to have all new cars sold in the country be electric by 2035. This ambitious goal will require continued support and incentives to encourage more Canadians to make the switch to electric vehicles.