12.5% more expensive: Tesla is taking a huge risk by raising the prices of all its models, starting with Canada

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Starting February 1, 2025, Tesla will increase the prices of nearly all its models on the Canadian market, with increases reaching up to $6,300 USD for some configurations.

These changes come in a tense context where government subsidies for electric vehicles are disappearing, and trade tensions with the United States are soaring. At the time of writing this post, only Canada is affected by the price increase. However, with potential new policies coming into effect, other countries might also face a rise in Tesla’s prices.

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Price increases across the range

The Model 3 sees the most notable adjustments, with increases ranging from $2,800 to $6,300 depending on the version. For example, the Performance model goes from $49,400 to $55,600. The Model Y, Model S, and Model X are also affected, with a uniform price increase of $2,800 for all versions. Curiously, the Cybertruck remains the only model unaffected by these price hikes, even though its available versions, like the “Foundation Series,” are already listed at astronomical prices reaching up to $115,400 USD. The lack of an adjustment for the Cybertruck might reflect an inventory surplus in the U.S. market, where Tesla recently lowered prices for certain versions to stimulate sales.

The Cybertruck remains the only model unaffected by these price hikes, even though it can reach 5,400 USD - © Tesla
The Cybertruck remains the only model unaffected by these price hikes, even though it can reach $115,400 USD – © Tesla

Declining government subsidies and a market under pressure

These price increases come as the Canadian federal EV incentive program, which offered a $3,500 USD subsidy, has been discontinued. Some provinces, like Yukon or British Columbia, continue to offer financial support, but these remain limited and do not fully offset the price hikes. Additionally, Tesla has not yet provided explanations to justify these sudden increases, although a strategic alignment with trade tensions between Canada and the U.S. is a plausible assumption. The U.S. President recently announced a 25% tariff on some Canadian imports, and the Canadian government has hinted that it may retaliate. If these tensions persist, prices for electric vehicles may continue to rise, making access to this technology more difficult for consumers.

Tesla has not yet provided explanations to justify these sudden increases - © Tesla
Tesla has not yet provided explanations to justify these sudden increases – © Tesla

Competitors could benefit

These massive increases open the door for competing manufacturers. Brands like Hyundai, Volkswagen, and Nissan could attract buyers looking for more affordable options. Moreover, Chinese manufacturers, already very aggressive on prices, could make a splash by offering competitive alternatives in the North American market. As Canada aims to achieve 100% new electric vehicle sales by 2035, these price hikes could complicate the achievement of that goal. Tesla, long seen as the leader in electric vehicles, may lose ground to cheaper yet equally performing models.

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This article explores Tesla’s recent price hikes in Canada, the underlying trade tensions, and their impact on the electric vehicle market. As incentives decrease and prices rise, Canadian buyers will need to explore new options to make the switch to electric.

Images: © Tesla

Adrien Conges
Adrien Conges
I grew up near Magny-Cours, an old Formula 1 circuit in France so I've been passionate about motorsport and automobiles since childhood. I currently live in Bordeaux, France and I'm still waiting for Ferrari to win a 17th F1 constructors' title.

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