Tesla is now offering a major pricing and financing change in Canada that could improve affordability for buyers. The company has introduced a new leasing option for the Model Y Long Range all-wheel drive, with monthly payments starting at C$742 over a 48-month term, according to Tesla’s Canadian website.
The move follows Tesla’s earlier decision to raise prices in Canada on some Model Y versions after the country imposed a 25% tariff on U.S.-made vehicles. That tariff increased costs for Tesla’s Canadian customers and likely pressured demand, making financing flexibility more important.
Tesla also appears to be adjusting prices across its Canadian lineup. The Model Y Long Range all-wheel drive is now listed at C$70,610, while the Model Y Launch Series remains at C$84,990. The Model Y Rear-Wheel Drive Long Range, imported from China, is priced at C$64,990.
The company has also launched a new version of the Model 3 in Canada. The Model 3 Rear-Wheel Drive Long Range is listed at C$64,990, making it eligible for a C$5,000 federal EV rebate. That incentive could help Tesla offset part of the higher sticker price for some buyers.
On the product side, Tesla continues to emphasize range and performance in its Canadian offerings. The new Model 3 Long Range Rear-Wheel Drive is positioned as a more affordable long-range option, while the Model Y Long Range all-wheel drive remains the key volume model for Canadian shoppers.
For investors, the key issue is whether Tesla can maintain sales momentum in Canada despite tariff-driven pricing pressure. Leasing and rebate eligibility may support demand in the near term, but the tariff environment still creates uncertainty around margins and delivery volumes.