Tesla’s rear-drive Model 3 is listed in Canada at $42,132 including fees.
The sedan does not qualify for Ottawa’s $5,000 federal EV rebate. Does so for Quebec’s $2,000 rebate.
The model is presumed to be sourced from Tesla’s Shanghai assembly plant.
Tesla has returned a lower-cost Model 3 sedan to its Canadian lineup, giving the automaker a new entry offering in a market where price remains one of the main obstacles for potential EV buyers.
The rear-wheel-drive Model 3 appeared on Tesla’s Canadian website a few days ago with a starting price of $42,132, including delivery and other fees. That price puts the sedan below most new EVs sold in Canada and close to the lowest-cost battery-electric options available to consumers which is currently the Kia EV4.
The new model does not qualify for Ottawa’s $5,000 federal EV rebate, according to Tesla’s website. While vehicles priced below $50,000 can meet the program’s price criterion, the rebate excludes models assembled in countries without a free-trade agreement with Canada. China is one of them.
Thus, the vehicle is presumed to be built at Tesla’s Shanghai assembly plant and imported into Canada through the federal quota system for China-made EVs. Tesla has been viewed as one of the manufacturers most likely to use the new mechanism, though the department had not immediately confirmed whether the company had received quota approval. The new Model 3 rear-wheel-drive might be proof of approval.
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Even without the federal rebate, the reintroduced Model 3 ranks among Canada’s least expensive electric vehicles. The Kia EV4, Fiat 500e and Chevrolet Bolt remain some of the least expensive in the land, especially after the federal incentive is applied, making them the only lower-priced EVs cited in the market comparison.
Tesla previously relied on China-built Model 3 and Model Y imports for Canada before ending that sourcing route in 2024. The change followed Ottawa’s decision to impose a 100% surtax on China-made EVs, but things have changed.
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The arrival of the new Model 3 listing is very timely, as soaring gasoline prices renew consumer interest in EVs.
