Tesla's market in Canada is in crisis: The Tesla new registrations in Canada fell by 67% in the first half of 2025 to only 9,000 units – down from over 26,000 in the same period last year.
Reasons for the sales decline
Several factors have stifled demand:
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Removal of subsidies: Nationwide iZEV rebates and provincial bonuses in British Columbia and Québec were eliminated.
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Tariff barriers: Canada's 100% import tariffs on Chinese EVs and recent 35% US tariffs against Canadian goods drive prices up.
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Market image: Controversial statements by Elon Musk (“Canada is not a real country”) have damaged brand trust.
Price reduction as a countermeasure
To stop the decline, Tesla recently lowered the Model Y price in Canada by $20,000 CAD to $64,990 CAD, below pre-tariff level.
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Import from Giga Berlin bypasses Chinese tariffs
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Introduction of Diamond Black paint option for $2,000 CAD
These measures were specifically aimed at the Model Y, while other Tesla models remain unchanged.
Outlook for Tesla in Canada
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Further price adjustments possible if Giga Berlin imports are expanded
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Recovery opportunities: Return of subsidy programs or bilateral tariff agreements could boost demand
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Reputation work: Positive marketing and local engagement are essential to regain the trust of Canadian buyers
Even though the numbers are alarming, the Canadian market remains attractive in the long term. Tesla must now quickly counteract to not lose the electric car market segment in Canada to competitors like Ford, GM, or Chinese brands.
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