Tesla Slashes Model Y Price in Canada by $15K to Dodge Tariffs

Tesla Slashes Model Y Price in Canada by $15K to Dodge Tariffs originally appeared on Autoblog.

Tesla has quietly slashedCAD $20,000off the price of the Model Y Long Range AWD in Canada—roughly$15,000 USD—in a desperate bid to revive collapsing sales. The move, unannounced by press release and unaccompanied by the usual fanfare, was first spotted by eagle-eyed shoppers on Tesla’s Canadian site, where the price had tumbled fromCAD $84,990down toCAD $64,990.

It’s a dramatic reversal that underlines just how brutal this year has been for Tesla in foreign markets. With a25% surtaximposed by the Canadian government in retaliation for Trump-era U.S. tariffs, the company was forced to hike prices sharply earlier this year. Now, withsales virtually evaporated, Tesla is playing catch-up.According to reports from Electrek and others, Tesla isnow importing the Model Y from its Berlin Gigafactory—rather than its U.S. plants—to bypass Canadian tariffs. While the Model 3 continues to be sourced from the U.S. and still suffers from the surcharge, the Berlin-built Model Y is slipping under the radar. That’s created a rare pricing anomaly:the larger Model Y is now significantly cheaper than the Model 3in Canada.

Related: Only One Tesla Is Selling Better Than It Did Last Year

Buyers on X (formerly Twitter) were quick to notice. “The Model 3 is 79,990. The Model Y is 64,990. I wonder what they want to sell,” said one user. Another joked, “$20,000 Jesus.” Still others lamented just missing out: “Feel bad for those who paid 85K.”For now,Canadian consumers are the clear winners, especially those in Québec, where the new sub-CAD $65,000 pricing requalifies the Model Y for provincial EV incentives. But for Tesla, it’s a different story.

A Bleeding Global Market

The Canadian collapse is just the latest episode in what’s been a tough year globally. InEurope, Tesla has now posted itsfifth consecutive monthly sales decline, with registrations across the EU, UK, and EFTA countries plummeting nearly28% in Maycompared to a year earlier. The slide suggests rivals like BYD and Volkswagen are beginning to eat into Tesla’s share — especially asits aging product lineupbegins to feel the strainTesla Sales Drop in Europe for Fifth Straight Month.Even at home, things haven’t gone smoothly. While Tesla’sQ2 delivery numberswere technically better than the most pessimistic analyst forecasts, they were still downnearly 60,000 unitsyear-over-year. Tesla delivered384,122 vehicles in Q2, down from443,956in the same period last year. Analysts at Troy Teslike had expected just 355,000, so markets rallied slightly on the “less bad than feared” resultTesla’s Q2 Sales Drop Year-Over-Year With Surprising Silver Lining.

New Enemies at the Gate

As if Tesla didn’t already have enough problems,Nissan is now taking direct aim. The brand recently revealed the2026 Leaf, now reborn as a crossover SUV with sharp styling, fast-charging capability, and up to303 miles of range. Even more threatening? It starts in themid-$30,000s, undercutting the Model Y by a wide margin.Whether it’s tax policy, declining relevance, or fresh competition from legacy OEMs,Tesla’s grip on EV dominance is visibly loosening. The pricing chaos in Canada may be a short-term solution, but it also points to a longer-term question:Is Tesla still the disruptor, or is it being disrupted?For now, Canadian buyers get a win. But the bigger picture? Tesla’s house is wobbling—and it’s clear that Elon Musk’s empire is being tested from all sides.

Tesla Slashes Model Y Price in Canada by $15K to Dodge Tariffs first appeared on Autoblog on Jul 16, 2025

This story was originally reported by Autoblog on Jul 16, 2025, where it first appeared.