Tesla is making a determined transfer to remain alive in Canada as its gross sales endure from the fallout of Donald Trump’s commerce warfare. In a quiet however surprising replace to its web site, the electrical automobile maker has drastically lowered the value of its best-selling Mannequin Y SUV by a staggering $20,000.
The transfer is a direct response to a brutal commerce dispute that has crippled Tesla’s Canadian operations. In retaliation for tariffs imposed by the Trump administration, Ottawa slapped a 25% surtax on all vehicles imported from the USA beginning on April 9, 2025. Confronted with this new price, Tesla had no alternative however to lift the value of a Canadian Mannequin Y to almost CAD $84,990 (USD $61,500).
The end result was catastrophic. In response to reviews from Electrek, the large worth hike prompted demand to utterly evaporate, with Tesla’s gross sales in Canada grinding to a digital halt in latest months. Tesla, which doesn’t present gross sales figures by area and nation, noticed its total gross sales drop by 13.5% in the second quarter in comparison with a yr earlier.
Now, in a bid to reignite gross sales, Tesla has reversed course. The Mannequin Y Lengthy Vary All-Wheel Drive now has a beginning worth of, in response to the company’s website. $64,990, a full $20,000 lower than its peak. The doubtless clarification for this dramatic reversal is a main strategic pivot: the brand new, cheaper Mannequin Ys are reportedly being imported from Tesla’s Gigafactory in Berlin, Germany, permitting the corporate to bypass the steep tariffs on U.S.-made autos.
Whereas a win for brand new patrons, the choice has created a ludicrous pricing scenario. The costs of different Tesla fashions, that are nonetheless sourced from the U.S., stay inflated by the surcharges. This implies the Mannequin Y, a in style SUV, is now considerably cheaper than the Mannequin 3, Tesla’s entry-level sedan. A fast test of Tesla’s Canadian web site exhibits the Mannequin 3 Lengthy Vary All-Wheel Drive starting at $70,772, almost $6,000 greater than the bigger and extra in style SUV.
The sudden worth drop was broadly mentioned by Tesla followers and potential patrons on X (previously Twitter), with reactions starting from shock and pleasure to remorse for individuals who purchased simply a few weeks too early.
“$20,000 Jesus,” one consumer exclaimed.
$20,000 Jesus
— Kevin Melnuk (@KevinMelnuk) July 11, 2025
“Really feel unhealthy for individuals who paid 85K,” mentioned one other.
Really feel unhealthy for individuals who paid 85k
— Waldo (@curtd13) July 11, 2025
One consumer identified the unusual new pricing dynamic: “The Mannequin 3 is 79,990 The Mannequin Y is 64,990 I’m wondering what they wish to promote.”
The mannequin 3 is 79,990
The mannequin y is 64,990I’m wondering what they wanna promote 😆
— PlentyofZero (@random01097463) July 11, 2025
However for individuals who waited, the information was trigger for celebration. “Superior! Ordering one tomorrow!” one other rejoiced.
Superior ! Ordering one tomorrow !
— Okay C 189 (@kennystjohns) July 11, 2025
Why It Issues
The transfer highlights Tesla’s rising vulnerability in international markets because it faces mounting strain from commerce insurance policies, intensifying EV competitors, and erratic demand. It additionally underscores the unpredictability of Musk-era pricing, which has made shopping for a Tesla really feel extra like shopping for crypto: unstable, emotional, and infrequently rewarding.
For Canadian customers, it might be a probability to attain a deal. However for Tesla, it’s a sign that its grip on international EV dominance could also be slipping.
