The move comes as the company navigates Canada’s EV mandate, a looming U.S. federal tax credit deadline, and the recent conclusion of a government investigation into $43 million in rebate claims.
Tesla has launched free, unlimited Supercharging on all Model 3 inventory in Canada, calling it an opportunity for “unlimited road trips through Canada.”
The move comes as the company navigates a turbulent North American landscape marked by Canada’s contested EV mandate, steep tariffs, slumping Canadian sales, a looming U.S. federal tax credit deadline, and the conclusion of a government rebate investigation.
Canada’s zero-emission vehicle mandate, which requires automakers to meet a 20% EV sales target by 2026 or purchase credits from overcompliant rivals, has drawn opposition from Washington and domestic manufacturers.
Industry groups say Tesla, which sells only EVs, is the chief beneficiary, booking over $400 million in regulatory credits in the first quarter (Q1), according to a Politico report.
Sales in Canada have plunged after Ottawa imposed a 25% surtax on U.S.-built cars in April following President Donald Trump’s reinstated auto tariffs.
The Model Y’s price jumped to C$84,000 Canadian dollars, nearly $20,000 above U.S. pricing, halting demand, Electrek reported.
Tesla has now reduced the Canadian Model Y Long Range AWD price by approximately C$20,000 ($14,484) to C$65,000 ($47,073), likely by sourcing from its Berlin plant, with delivery estimates for September–October.
In the U.S., CEO Elon Musk is urging customers to take delivery by Sept. 30 to claim up to $7,500 in federal tax credits ending under new legislation signed by Trump. Ahead of the cutoff, Tesla raised the Model Y Long Range AWD lease price to $449 from $399, extended delivery times, and set order cutoffs for free upgrades. Model 3 leases start at $299 for Rear-Wheel Drive and $699 for Performance, both with $3,000 down for 24 months.
Both models remain eligible for the $7,500 purchase and lease incentives, as well as other perks, including $1,000 discounts for select groups, a one-month Full Self-Driving (Supervised) trial, and feature transferability.
Separately, Transport Canada has cleared Tesla in its investigation into $43 million in EV rebate claims filed in a single weekend before the Jan. 12 program cutoff, Electrek noted.
Officials confirmed the claims represented legitimate sales, though the Canadian Auto Dealers Association still questions how Tesla anticipated the sudden closure.
On Stocktwits, retail sentiment for Tesla was ‘bullish’ amid ‘low’ message volume.
Tesla’s stock has declined 17% so far in 2025.
($1=C$1.38)
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