In a move very unexpected but good news for EV buyers in Canada, Tesla has just cut the price of its Model Y Long Range AWD by an incredible $20,000, which will now start at $64,990 instead of the
earlier $84,990. The price reduction means that, with all options factored in, the Y is back to selling below pre-tariff levels — and even cheaper than the car had been at the time the tariffs hit the car in April 2025 by some $5,000.
Tesla quietly made the update Thursday night via its online configurator. Tesla Model Y Prices Slashed – 3 Big Reasons Why While no price change has been filed for the other models Tesla produces, the deep cut in the price of the Model Y make it extremely likely that something significant is changing in Tesla’s supply chain strategy.
Experts say this probably suggests Tesla’s now importing the Model Y from Giga Berlin, Germany. Giga Berlin – Model Y (Germany) This is the factory building Model Ys, and it is not covered by the 100% tariff that Canada has on Chinese electric vehicles (which used to limit shipments from Gigafactory Shanghai).
Another hint toward the Germany link is the revised shipping schedule. Customers placing orders today are being told they can expect their delivery to be in September or October, which is pretty extended for estimates of U.S. vehicle deliveries, but more typical of European imports.
In Canada, in addition to the price reduction, Tesla has now added the Diamond Black paint option. Previously available state-side only, this beautiful new paint option is now available in Canada for a premium of $2,000.
With this pricing shake up and new customization features, Tesla appears to be trying to bring the Model Y “down to earth” in Canada with increased competition and changes to government policies.
