Tesla has suspended Canadian orders for both the Rear-Wheel Drive (RWD) and All-Wheel Drive (AWD) variants of its Shanghai-built Model 3 Premium. The move temporarily eliminates the automaker's most affordable offerings in Canada, leaving consumers with only the U.S.-built Model 3 Performance, which starts at $74,990.
Discrepancy between Tesla and Federal Data
A message posted on Tesla Canada’s official configurator states: "Model 3 Premium orders paused after high demand exhausted Tesla’s import quota. Ordering resumes if Govt of Canada issues more quota, expected March 2027."
The decision affects the $39,490 RWD variant—which launched earlier this year as one of the most competitively priced EVs in the country—and the $49,990 AWD model. However, the reason provided by Tesla conflicts with official federal tracking.
According to Global Affairs Canada's Export and Import Controls System (EICS) report updated on October 9, 33,069 of the 33,397 quota allocations for the current six-month window remain available. Since the federal framework took effect on March 1 — allowing up to 49,000 Chinese-manufactured EVs per year into Canada at a reduced 6.1% tariff — only 15,931 total import permits have been issued across all manufacturers.
Is Ottawa capping individual manufacturer limits?
Under Notice to Importers No. 1168, Canadian import permits are officially administered on a first-come, first-served basis without explicit, publicly announced limits per automaker.
However, regulatory provisions under section 3.4.6 grant Global Affairs Canada the discretionary authority to set aside portions of the remaining quota to ensure equitable distribution among Original Equipment Manufacturers (OEMs) and new market entrants like BYD and Chery.
Global Affairs Canada spokesperson Rachael Dolan confirmed to the DriveTeslaCanada.ca outlet that the department is actively reviewing how remaining allocations are distributed:
"Global Affairs Canada is consulting with interested companies to optimize remaining quota availability and evaluate the quota’s implementation to inform a longer-term policy designed to catalyze new joint-venture investment on Canadian soil..."
While the government declined to confirm whether a company-specific cap was applied directly to Tesla due to commercial confidentiality, the policy suggests Ottawa may be limiting Tesla from absorbing the majority of the remaining quota.
What it means for Canadian Buyers
Because the Shanghai-built Model 3 Premium models don’t qualify for the federal $5,000 iZEV rebate due to non-FTA origin rules, sales data cannot be cross-referenced via federal incentive databases. However, import tracking indicates that Chinese Model 3 shipments into Canada slowed dramatically beginning in September.
Canadian consumers seeking an entry-level Model 3 face a long wait. Unless the federal government grants an explicit additional allocation to Tesla following current stakeholder consultations, orders for the Model 3 Premium are not expected to reopen until March 1, 2027, when Canada's next annual quota period officially begins.