Tesla has begun selling Chinese-made Model 3s in Canada. The cars, manufactured at the company's Giga Shanghai factory, start at $39,490 CAD (roughly $29,000 USD) for a Model 3 Premium Rear-Wheel Drive variant. This marks the lowest price ever for a Model 3 in any market.
The move represents a significant shift in Tesla's global manufacturing strategy. By exporting Chinese-built vehicles to North America, Tesla is leveraging lower production costs to offer competitive pricing in a crowded EV market. The price gap is notable — a similarly equipped Model 3 in the US starts around $42,000, making the Canadian option several thousand dollars cheaper even before exchange rates.
Why it matters: This undercuts Tesla's own US pricing, which raises questions about why American buyers pay more for the same car built in Fremont. It also puts pressure on domestic EV competitors in Canada, particularly the few affordable options still available from GM and Ford. The timing matters too — Canadian EV sales have slowed, and a price cut of this magnitude could reboot interest in the segment.
The subtext: Tesla has exported Chinese-made cars to Europe for years. Sending them to North America is a newer playbook, and it comes as the company faces Questions about whether tariffs or policy changes could disrupt this supply chain down the road.