Tesla elevates Canadian prices by as much as 21% in response to imposed tariffs
Tesla Adjusts Prices in Response to Canadian Tariffs
Tesla has announced price increases for its entire vehicle lineup in Canada, with the adjustments largely attributed to a 25% surtax on U.S. vehicle imports imposed by the Canadian government. This tariff has led to significant cost increases, with the Model Y Long Range, for instance, now priced at $84,990 – a $15,000 increase.
To counteract the negative impact of these tariffs and slumping sales, Tesla is implementing a strategic approach. The company is sourcing some vehicles from non-U.S. plants, such as their Berlin factory, to offer lower prices on certain models. For example, the Model Y price has been reduced by approximately $20,000 to around $65,000, with delivery estimates for this year.
In an effort to stimulate demand amid rising prices and slumping sales, Tesla is also offering incentives. Free Supercharging is now available on all Model 3 inventory in Canada, providing a significant cost saving for customers.
In the U.S., Tesla is bundling additional premium features with vehicle price hikes to add value. However, this strategy differs in Canada due to the local tariff impacts. For instance, the Model S and Model X in the U.S. now include a "Luxe Package" that bundles Full Self-Driving (FSD), free Supercharging for life, Premium Connectivity, and Premium Service, but this package and price increase do not apply in Canada.
Despite these changes, Tesla's broader strategy aims to balance increased costs with added value and maintain customer interest despite tariffs and market challenges. The company is encouraging customers to "Explore pre-tariff priced inventory while supplies last" to take advantage of these cost-saving opportunities.
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