Tesla is desperately taking action to stay alive in Canada because of the impact of Donald Trump’s trade war. In a quiet but shocking update to its website, the electric car maker has drastically lowered the price of its best-selling model, the Y SUV, for a stunning $20,000.
The move is a direct response to a brutal trade dispute that paralyzes Tesla’s Canadian operations. In retaliation against the Trump administration’s tariffs, Ottawa has slapped 25% of Suttax from all cars imported from the United States starting April 9, 2025. Facing this new cost, Tesla has no choice but to raise the price of the Canadian large Y to nearly CAD $84,990 (USD $61,500).
The result is disastrous. According to Electrek, a large amount of price increases have caused demand to evaporate completely, and Tesla’s sales in Canada have gradually stopped in recent months. Tesla did not provide sales data by region and country, and its overall sales fell 13.5% in the second quarter compared to the same period last year.
Now, Tesla has turned the course around for reselling. According to the company’s website, Y-type Y-type long-distance drivers now have starting prices. $64,990, $20,000 less than the peak. The possible explanation for this dramatic reversal is a major strategic hub: the new, cheaper YS reportedly imported from Tesla’s Gigafactory in Berlin, Germany, allowing the company to bypass huge tariffs on U.S.-made vehicles.
Despite the victory of the new buyer, the decision created a ridiculous pricing situation. The prices of other Tesla models that are still from the United States are still inflated by surcharges. This means that the Model Y (a popular SUV) is now better than Tesla’s entry-level sedan 3 Model 3. A quick check of Tesla’s Canadian website shows that the Model 3 long-distance all-wheel drive starts at $70,772, which is nearly $6,000 more than the larger, more popular SUV.
Tesla fans and potential buyers have discussed the price drop extensively on X (formerly known as Twitter), with reactions ranging from shock and excitement to regretting those who bought too early for weeks.
One user exclaimed, “$20,000 Jesus.”
$20,000 Jesus
— Kevin Melnuk (@kevinmelnuk) July 11, 2025
Another said: “For those who pay 85K, that makes those bad.”
Sad for those who pay 85K
– Waldo (@curtd13) July 11, 2025
One user pointed out the weird new pricing dynamic: “The Model 3 is 79,990 model Y model is 64,990, and I want to know what they want to sell.”
Model 3 is 79,990
Y-type is 64,990I want to know what they want to sell 😆
– PlentyOfzero (@Random01097463) July 11, 2025
But for those who are waiting, the news is the reason for celebration. “Great! Order one tomorrow!” Another happy.
Amazing! Order tomorrow!
— KC 189 (@kennystjohns) July 11, 2025
Why it matters
The move highlights Tesla’s growing vulnerability in the global market as it faces pressures to strengthen competition for electric vehicles and instability in demand. It also emphasizes the unpredictability of prices in the Musk era, which makes buying Tesla feel more like buying cryptocurrencies: turbulent, emotional and occasionally meaningful.
For Canadian consumers, this could be an opportunity to make a deal. But for Tesla, it suggests that its control over global EV domination may slip.
