Canada’s EV market got a serious jolt. Tesla has officially relaunched an expanded Model 3 lineup north of the border, and this time, entry price is genuinely compelling. New Tesla Model 3 Premium RWD starts at CAD $39,490 — roughly $29,000 USD, making it the most accessible Tesla ever offered in the Canadian market.
That’s not a rounding error. It’s a 50% reduction compared to the previously cheapest option, the now-discontinued Model 3 Long Range AWD at CAD $79,990.
Getting to this point wasn’t straightforward. Over the past two years, Tesla’s Canadian supply chain has been nothing short of chaotic. Shanghai-built units originally served Canadian buyers until Ottawa slapped a 100% tariff on Chinese-made EVs in 2024. Tesla pivoted to its Fremont, California facility to compensate, only to find that Canada then imposed a 25% retaliatory tariff on U.S.-made vehicles in early 2025, pushing the Long Range AWD up to CAD $79,990.
That’s when Tesla pulled its U.S.-built inventory entirely, clearing the runway for a fresh approach.
Turning point came earlier this year. Canadian Prime Minister Mark Carney negotiated a tariff arrangement with China that reduced EV import duties, within an annual quota of 49,000 units — from 100% down to the standard most-favored-nation rate of 6.1%. That single policy shift made Shanghai-sourced Model 3s economically viable for Canadians again.
Tesla moved quickly. The new lineup now includes the Model 3 Premium RWD (463 km range, 0–100 km/h in 4.2 seconds) alongside a significantly repriced Model 3 Performance, which dropped 17% from CAD $89,990 to CAD $74,990. Deliveries are expected to begin as early as May or June 2026.
Here’s where things get particularly interesting for buyers in Toronto specifically. The city offers some of the lowest electricity rates globally, including an Ultra-Low Overnight Plan. Under that plan, a full charge of the Model 3 Premium RWD costs approximately CAD $4 — taxes and delivery included.
Compare that to filling a comparable gas vehicle: Honda Civic: ~$64 per tank and Toyota Corolla: ~$68.80 per tank.
Those numbers speak for themselves. Total cost of ownership calculation shifts dramatically in Tesla’s favor, especially for daily commuters who can charge overnight.
With tariffs finally cooperating and pricing at a historic low, it seems Canadians are finding that going electric has never made more Model-3-sense.
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