Tesla is taking a desperate step to survive in Canada as its sales suffer from the outcome of Donald Trump’s trade war. In a cool but shocking update for its website, the electric vehicle manufacturer has reduced the price of its best -selling model Y SUV by $ 20,000.
This step is a direct response to a cruel trade dispute that has crippled Tesla’s Canadian operations. In vengeance for tariffs imposed by the Trump administration, Ottawa slapped 25% Cartax on all cars imported from the United States starting from April 9, 2025. This new cost faced, Tesla had no choice, but a Canadian model Y has to increase the price of Y $ 84,990 (USD $ 61,500).
The result was disastrous. according to the report ElectrekWith the sale of Tesla at a virtual stage in recent months, the mass price increase demanded a complete evaporation. Tesla, which does not provide sale figures by the region and the country, saw a fall of 13.5% in its total sales in the second quarter compared to a year ago.
Now, in the bid to rule the sale, Tesla has reversed the course. Model Y long range all-wheel drive now has an initial price, according to Company Website$ 64,990, lower $ 20,000 from its peak. Possible explanation for this dramatic upright is a major strategic axis: new, cheap model YS is allegedly being imported from Tesla’s Gigafactory in Berlin, Germany, allowing the company to bypass the tariffs parked on US-made vehicles.
During a win for new buyers, the decision has created an attractive pricing status. Other Tesla models prices, which are still received from the US, are inflated by overload. This means that the model Y, a popular SUV, is now much cheaper than the entry-level sedan of model 3, Tesla. A quick check model of Tesla’s Canadian website shows 3 long range all-wheel drive Starts at $ 70,772About $ 6,000 more than large and more popular SUVs.
The decline of a sudden price by fans of Tesla and a sudden price decline was widely discussed by potential buyers on the X (east), with shock and enthusiasm to regaining a few weeks ago for the buyers.
“$ 20,000 Jesus,” said a user.
$ 20,000 Jesus
– Kevin Melanuk (@kevinmelnuk) July 11, 2025
“Feel bad for those who paid 85k,” said another.
Feel bad for those paying 85K
– Waldo (@Curtd13) July 11, 2025
A user told the strange new pricing dynamic: “Model 3 is 79,990. Model Y is 64,990. I wonder what they want to sell.”
Model 3 is 79,990
Model Y is 64,990I wonder what they want to sell
– Plantiphosero (@random01097463) July 11, 2025
But for those waiting, the news was the reason for the festival. “Excellent! Tomorrow to order!” Another rejoice.
very nice ! An order tomorrow!
– Casey 189 (@Kennystjohns) July 11, 2025
why it matters
This step highlights Tesla’s increasing vulnerability in global markets as it faces trade policies, intensifying EV competition and increasing pressure from irregular demands. It also underlines the unexpectedness of musk-era pricing, which has felt like buying a Tesla like buying a crypto: unstable, emotional and sometimes rewarded.
For Canadian consumers, this may be a chance to make a deal. But for Tesla, it is a sign that its grip on global EV dominance can slip.
