Tesla Canada Model 3 slashes price by half! Drops from 400,000 to 198,000 yuan, netizens say: Thanks to the Chinese factory

Gelonghui, May 8th | According to Kuai Tech, Tesla has recently officially adjusted prices in the Canadian market. The starting price of the Model 3 Premium RWD version dropped sharply from 79,990 Canadian dollars (about 400,000 RMB) to 39,490 Canadian dollars (about 198,000 RMB), a reduction of 50%, setting a new record low price for Tesla in Canada! After this price cut, the price of the Model 3 in Canada is even 37,000 RMB cheaper than in China (235,500 RMB), making Canada the lowest-priced market for Tesla globally for the first time. Some netizens commented on the Electrek website: "Without the low-cost Chinese factory and China-Canada tariff benefits, we wouldn’t be able to purchase Teslas at such low prices." Others joked: "We used to envy the low Tesla prices in China, now it’s our turn—thanks, China!"

Why is this? Mainly because there are two key driving factors behind the drastic Tesla price cut, both closely related to China. First is the adjustment to the China-Canada trade agreement: at the beginning of 2026, the import tariff rate on quota-approved (49,000 vehicles/year) Chinese-made electric vehicles entering Canada will be significantly reduced from 100% to 6.1%, with the quota set at 24,500 vehicles for the first half of the year. Second, Tesla shifted the supply of Model 3s for the Canadian market from its Fremont factory in the U.S. to the Shanghai Gigafactory. As Tesla’s lowest-cost production base globally, the Shanghai factory, with its mature supply chain and highly efficient production system, provides a solid foundation for significant price reductions. In contrast, U.S.-made Teslas entering Canada are still subject to a 25% tariff, eliminating any cost advantage.