Tesla launches Model 3 RWD in Canada at record-low $39,490 ($29,000 USD) from China

Tesla has launched a new Model 3 Premium RWD trim in Canada starting at just $39,490 CAD — a record-low price for the electric sedan in the country. The price, which converts to roughly $29,000 USD, is made possible by sourcing the vehicle from Giga Shanghai instead of Fremont, California.

The move marks the first time Tesla is selling China-made vehicles in Canada since the country imposed a 100% tariff on Chinese EVs back in 2024 — and it creates a massive price gap with the Model 3 Performance.

From Fremont to Shanghai and back again

Tesla’s Canadian Model 3 supply chain has been on quite a ride over the past two years. Before late 2024, Tesla supplied Canada with Shanghai-built Model 3 vehicles. When Canada imposed a 100% surtax on Chinese-made EVs, Tesla switched to sourcing from its Fremont factory in California.

That arrangement became untenable when Canada slapped 25% counter-tariffs on US-made vehicles in early 2025, pushing the Model 3 Long Range AWD to a staggering $79,990 CAD. As we reported in March, Tesla responded by shipping its remaining US-built Canadian Model 3 inventory back to the United States, clearing the deck for Shanghai-built replacements.