Tesla EVs Are About To Get A Lot More Expensive In Canada

The American automaker quietly updated its website to warn wannabe shoppers that it will hike prices next month.

By: Iulian Dnistran

Jan 23, 2025 at 4:19am ET

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Tesla will increase the pricing of all its cars in Canada next month.
Customers will need to pay as much as $6,200 extra starting next month.

Tesla will significantly increase the prices of its electric cars in Canada on the first day of February, according to a discrete note posted on its website earlier today.

The biggest bump in pricing will be for the Model 3 sedan, which will see its MSRP go up as much as $6,200 (C$9,000). Meanwhile, all variants of the Model Y, Model S and Model X will see increases of $2,750 (C$4,000). The Cybertruck is unaffected.

It’s unclear what the reason behind the pricing increases is, as Tesla did not explain the move. That said, it might have something to do with the impending tariff war between the United States and Canada. Earlier this week, Canadian Prime Minister Justin Trudeau made it clear that its government plans to respond accordingly if U.S. President Donald Trump imposed 25% tariffs on imports from Canada and Mexico starting next month.

Whatever the reason, it’s clear that Canadian EV shoppers–especially those who were looking to get a new Tesla–need to reevaluate their budgets. Last week, the country’s federal EV incentive program, iZEV, was completely stopped after the funds had been exhausted. The program offered $3,500 (C$5,000) toward the purchase of a new EV and was supposed to last until March, but was cut short due to a “surge of interest.”

Earlier this month, Tesla upped the price of all Model Y versions in Canada by $700 (C$1,000). With the latest MSRP hikes and the federal EV incentive going away, shoppers might start looking elsewhere for their next battery-powered car.

tesla-price-increase-canada-february-2025

The message on Tesla's Canadian website tells owners prices will go up starting next month.

Photo by: Tesla

That said, there are still Canadian provinces that offer rebates for purchasing a new EV. Yukon, New Brunswick and Prince Edward Island offer up to $3,500 (C$5,000). British Columbia and Manitoba’s incentive programs can slash the cost of a new EV by up to $2,800 (C$4,000), while Nova Scotia offers up to $2,000 (C$2,000). Newfoundland and Labrador has a rebate of up to $1,700 (C$2,500).

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Bear in mind, however, that some of these regional programs have end dates as soon as March, while others will only run as long as there are funds available.

By 2035, Canada’s government wants all new cars sold to be electric.