In a move as strategic as it is spectacular, Tesla has cut the price of its all-wheel drive Model Y Long Range in Canada by $20,000. The model is now listed at $64,990, the same price as before the imposition of 100% customs duties on electric vehicles from China.
Avoiding tariffs by way of Europe
The price change, displayed as of last Thursday on Tesla's Canadian configurator, suggests that the manufacturer is now supplying the Canadian market from its German factory. The Giga Berlin plant produces exclusively produces the Model Y, making it a logical solution to bypass the tariff barriers imposed on Chinese vehicles like the Tesla built at Giga Shanghai.
Sales in freefall, especially in Quebec
The decision comes amid a dramatic decline in sales. In the first quarter of 2025, Tesla registrations in Quebec fell by 90 percent, contributing to an overall 67-percent drop across Canada in the first half of the year.
New features for 2025, but only one version
The 2025 Model Y retains its single Long Range version, with an estimated maximum range of 526 km according to Natural Resources Canada, with 19-inch wheels. The 20-inch wheels reduce the range to 488 km. New features include an 8-inch rear screen and the arrival of the Diamond Black finish, previously reserved for the U.S. (a $2,000 surcharge).
Deliveries of the lower-priced 2025 Model Ys are scheduled to start between September and October, a timeframe consistent with transporting them across the Atlantic. And by the way, no other Tesla model has yet received an equivalent price cut in Canada.