Tesla has launched an updated Model 3 lineup in Canada with Chinese-made Premium Rear-Wheel Drive models starting at a record-low $39,490 CAD—nearly half the previous $79,990 CAD entry price—and Performance variants at $74,990 CAD, following Canada's tariff reduction on Chinese EVs.
Tesla reintroduced its entry-level Model 3 Premium RWD for Canadian buyers at $39,490 CAD (about $29,000 USD), down from the prior Model 3 Long Range's $79,990 CAD, which has been discontinued. The Model 3 Performance price was also cut 17% from $89,990 CAD to $74,990 CAD (roughly $55,000 USD). These vehicles are produced at Tesla's Giga Shanghai factory. Previously, a 100% Canadian tariff on Chinese EVs led Tesla to ship Fremont, California-built models, but US-Canada trade tensions added a 25% tariff on US vehicles, inflating prices. Canada's recent drop to 6.1% on Chinese EVs now allows competitive Shanghai shipments. The new Premium RWD does not qualify for the Electric Vehicle Affordability Program's up to $5,000 CAD incentives, which apply to Canadian-made models. The lineup, echoing US updates but tailored for Canada, is available for order on Tesla's site as of May 2, boosting affordability in the market.
