Tesla Model 3 Sales Surge in Canada Following China EV Trade Deal
Tesla's Model 3 sales in Canada rose sharply in the third quarter after a trade agreement between Prime Minister Mark Carney and President Xi Jinping lowered tariffs on Chinese-made electric vehicles to 6.1%, replacing a 100% surtax.
Tesla Inc. experienced a significant increase in Model 3 sales in Canada during the third quarter, driven by shipments arriving from China. The boost followed a trade agreement between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping that reopened the Canadian market to Chinese-made electric vehicles.
Under the deal, up to 49,000 Chinese-manufactured EVs are permitted to enter Canada over a 12-month period. The agreement reduces the tariff on these vehicles to 6.1%, replacing a 100% surtax that had been implemented in 2024.
Government data indicates that nearly 16,000 EVs have arrived from China since May, with half of those vehicles priced below $35,000. DesRosiers Automotive Consultants Inc. attributed the sales bump to Tesla's aggressive pricing strategy in Canada, noting that some trims are priced 25% lower than comparable models in the United States.
The influx of competitively priced vehicles from China provided relief for Tesla amid competition in the Chinese market and sluggish demand in the U.S. Globally, Tesla reported third-quarter deliveries totaling 486,532 vehicles.