Tesla has made a significant move in the Canadian market by reopening orders for the Model 3 and introducing substantial price cuts. The Model 3 Premium Rear-Wheel Drive (RWD) now starts at $39,490 CAD, making it the most affordable it has ever been in the country. After factoring in additional fees, the total price comes to $42,116 CAD. This new pricing makes the Model 3 roughly 50% below the average cost of a new vehicle in Canada.
In terms of performance, the Model 3 Premium RWD offers an EPA-estimated range of 463 km, a top speed of 201 km/h, and a 0–100 km/h time of 4.2 seconds. The Model 3 Performance has also seen a significant price reduction, dropping from $89,990 to $74,990 CAD. Both models come with a panoramic glass roof and the same 463 km range rating. The shift back to Giga Shanghai production likely means the return of Lithium Iron Phosphate (LFP) batteries, which require regular charging to 100% for maximum daily range.
The price cuts are attributed to Tesla sourcing vehicles from its Giga Shanghai facility, taking advantage of lower production costs and passing on the savings to Canadian consumers. This move follows the “Canola for Cars” trade deal and aims to stay competitive against emerging Chinese EV rivals like BYD and Xiaomi.
Buyers of the Model 3 Premium RWD now qualify for the new $5,000 Federal Electric Vehicle Affordability Program (EVAP) rebate. Additionally, various provincial and territorial incentives can further reduce the price, such as Manitoba’s $4,000 EV rebate and Prince Edward Island’s $4,000 rebate.
While lower prices benefit prospective buyers and promote EV adoption in Canada, existing owners may experience a decrease in resale value. However, improved logistics, especially for Western Canada, are expected due to streamlined shipping from Shanghai to the Port of Vancouver.
First deliveries for the updated models are expected in May or June 2026. By aggressively lowering prices, Tesla is not only putting pressure on traditional automakers but also positioning itself ahead of new global competitors in the EV market. If you’re interested in purchasing the Model 3 Premium RWD, you can order it with a special link that includes 3 months of free Full Self-Driving.