A Chinese-made Tesla Model 3 arrives in Canada for under $40,000
Having become far too expensive due to Canadian anti-dumping duties on vehicles manufactured in the United States, the Tesla Model 3 can once again be ordered at an affordable price thanks to the return of an entry-level rear-wheel-drive version imported… from China.
This is one of the first models to benefit from the Carney administration’s recent decision to allow 49,000 Chinese electric vehicles per year through 2030 (70,000 thereafter) at a surcharge of just 6.1%.
In fact, the Model 3 has never been more affordable in Canada. The retail price for this version is set at $39,490 ($42,108 including fees). The catch is that it isn’t eligible for the $5,000 federal subsidy, since it isn’t manufactured in a country with which Canada has a free trade agreement. Only the $2,000 provincial subsidy will apply.
For the model with a range of 463 km—down from 584 km in the previous rear-wheel-drive Model 3—and a 0-to-100 km/h acceleration time of 5.2 seconds, an order placed today would be delivered in June, according to Tesla Canada’s online configurator. Those considering purchasing a Kia EV4 (front-wheel drive only, starting at $38,995) or a Hyundai IONIQ 6, for example, will need to give the matter serious thought.
In addition, the Model 3 Long Range AWD ($79,990) is no longer available here. However, the Model 3 Performance remains on the menu, and its retail price has been reduced by 17%, from $89,990 to $74,990. Still assembled in California, this model offers a range of 505 km and reaches 100 km/h in 3.1 seconds, according to Tesla.
It’s worth noting that before the imposition of 100% tariffs on electric vehicles manufactured in China on October 1, 2024, the Model 3 for the Canadian market also came from the Shanghai plant in China. The quality of assembly and finish had improved compared to models produced prior to the 2024 update.
The Car Guide believes that the Model 3 remains one of the best buys among electric cars in 2026.
