If you’ve become accustomed to Tesla slashing prices on their EVs, this news might surprise you.
Electrek recently discovered that Tesla is doing a complete 180 and increasing the prices of its entire lineup in the Canadian market.
Related: European automakers face a “perfect storm” as sales stagnate
Things are not looking good for EVs across the border
Things were already on a downhill slope in Canada, as the government plans to eliminate its federal EV incentive program. Quebec, the nation’s leader in EV sales, will reportedly follow the government’s lead and eliminate its own incentive program, too. The loss of these incentives, combined with Tesla’s price hikes, could damage the EV adoption rates in Canada.
Tesla
The Tesla Model 3 Performance will see the biggest price increase, at $9,000, followed by the Model 3 Long Range AWD’s $8,000 spike. The prices of Tesla’s other models and trims will increase by $4,000. Here is the breakdown:
- Model 3:
- – Long Range RWD: $4,000
- – Long Range AWD: $8,000
- – Performance: $9,000
- Model Y: $4,000
- Model S: $4,000
- Model X: $4,000
Buyers who have a referral code, like this one offered by Electrek, can still get CAD$1,300 off a new Model Y, Model S, or Model X, although that doesn’t quite offset the higher MSRPs.
Tesla did not give an official reason, but we can speculate
While there is no official reason for the price increases, Electrek’s reporting noted that the Canadian dollar’s immense loss of value against the US dollar could be one of the major factors.
President Donald Trump’s desire to impose 25% tariffs on any imported Canadian goods could also be involved, especially since Canada has said it will retaliate in response.
Electrek
Related: Canoo capsizes, joining the growing list of EV startup casualties
Despite being neighbors, our EV markets could not differ more
In contrast, the US’s EV market strategies are very different. Before leaving office, the Biden administration committed $635 million to further develop our charging infrastructure.
Tesla has been offering various incentives, including free charging and discounts, to try to sell Cybertrucks. Elon’s stainless steel beast hit the Canadian market back in November for a steep MSRP of CAD$138,000. Thankfully, that model didn’t receive a hike, but with that price tag, it didn’t really need one either.
Related: Biden admin commits $635 million to EVs in final days
Tesla
Final thoughts
With EV adoption slowing worldwide and nations looking to withdraw their incentive programs, Tesla’s Canadian price increase could not come at a worse time.
The EV manufacturer was already being challenged by domestic and Chinese competition, and this might make their situation even worse. How this affects their bottom line, and whether or not it’s simply a reactionary move to tariff threats, remains to be seen.
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