Tesla (TSLA) Sounds the Alarm in Canada as Prices Surge and ‘Pre-Tariff' Deals Run Out
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This move comes after President Donald Trump's decision to impose a 25% tariff on cars and car parts imported from countries outside the U.S. In retaliation, Canada introduced similar tariffs on U.S.-made vehicles and components. By promoting pre-tariff inventory, Tesla aims to boost sales while giving customers an opportunity to secure vehicles at lower prices before the full impact of the tariffs is felt.
Tesla Raises Prices by Up to 22% in Canada
As a result of these tariffs, prices for new Tesla orders have surged by as much as 22%, according to a site tracking Tesla prices in Canada. For example, a brand-new Model 3 with all-wheel drive now costs CA$79,990 ($57,700), compared to around CA$69,000 for similar models still in stock.
These price increases extend beyond the Model 3, affecting other models as well, including the Model S, Model X, Model Y, and even the new Cybertrucks.
At the same time, automakers across the industry are warning that these new tariffs could disrupt the global supply chain and push car prices even higher, hurting sales. Moreover, financial analysts estimate that the tariffs could add between $110 billion and $160 billion in annual costs to the industry, which could potentially reduce U.S. vehicle sales by millions of units.
Tesla Stock Rises as New Self-Driving Rules Spark Optimism
Despite ongoing tariff pressures, Tesla stock soared nearly 10% on Friday, closing at $284.95. The rally followed positive news for self-driving cars, as the White House introduced new rules to accelerate autonomous vehicle approvals. These rules aim to ease deployment of self-driving cars on public roads, accelerating Tesla's progress in autonomous driving.
In addition to regulatory support, Tesla's Q1 2025 earnings release on April 22 also played a role in lifting investor sentiment. During the earnings call, Elon Musk announced that he would scale back his involvement with the Department of Government Efficiency (DOGE). This move reassured investors that Musk's focus would remain firmly on Tesla, further fueling the stock's upward momentum.
Is Tesla a Buy, Sell, or Hold?
Overall, TSLA stock has a Hold consensus rating on TipRanks, based on 17 Buys, 11 Holds, and 12 Sell ratings. Also, the average Tesla price target of $284.74 implies 0.07% downside potential from current levels.
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