Reddit Tesla has dramatically lowered the price of the Model Y in Canada, cutting $20,000 off its previous price tag and bringing it back below pre-tariff levels. Late Thursday, Tesla announced an update to its online configurator, which shows the Model Y Long Range All-Wheel Drive (AWD) now starting at $64,990 — down from $84,990. That’s even $5,000 less than its price before the federal government’s 25% tariffs on non-CUSMA-compliant U.S.-made vehicles took effect in April 2025. Only the Long Range AWD trim of the Model Y is currently available in Canada. Alongside the price drop, Tesla also introduced the Diamond Black paint option for Canadian buyers, priced at $2,000. This colour was initially launched in the U.S. earlier this year but wasn’t available north of the border until now. The major price cut likely means Tesla will begin importing the Model Y from Gigafactory Berlin in Germany instead of its U.S. factories to bypass the tariffs. Giga Berlin exclusively produces the Model Y, which is why prices for all other Tesla models in Canada — including the Model S, Model X, Model 3, and Cybertruck — remain at their post-tariff rates. At the time of writing, the Model Y Long Range AWD is $15,000 cheaper than the Model 3 AWD in Canada. Importing from Gigafactory Shanghai isn’t an option, considering there’s an even heftier 100% tariff on Chinese-made electric vehicles. Other clues suggest a shift to Giga Berlin as well — including longer estimated delivery windows. Tesla’s website currently lists September–October delivery timelines for new Model Y orders in Canada, which lines up with typical delivery times for European imports. This price cut has additional benefits for Quebec buyers. At $64,990, the Model Y now qualifies for the province’s Roulez Vert rebate, which applies to vehicles priced under $65,000. That could mean up to $4,000 in provincial savings on top of the reduced MSRP. If you ordered a Model Y at $84,990 and haven’t taken delivery yet, Tesla is automatically adjusting existing orders to the new $64,990 price. Tesla’s Canadian sales have slumped significantly in 2025, with registrations down 67% in the first half of the year, largely due to the federal iZEV rebate ending, reduced provincial incentives, and the steep price hikes brought on by the tariffs. With this latest move, Tesla appears to be making a serious push to regain ground in the Canadian market.