Tesla discontinues complimentary Model 3 and Y upgrade incentive in the United States, maintains Supercharging privilege in Canada.
Tesla Announces Changes to EV Incentives in Canada
Tesla, the leading electric vehicle (EV) manufacturer, has announced changes to its incentives for buyers in Canada. The changes, which include a $7,500 credit for Model Y purchases and unlimited free Supercharging for Model 3 inventory, are aimed at boosting EV sales amidst tariff challenges and government policy shifts.
For Model 3 buyers in Canada, the current incentive is unlimited free Supercharging for life on all inventory vehicles. This offer covers charging at any Tesla Supercharger station across Canada and the United States for the life of the vehicle. However, this offer is only available for vehicles in inventory, not for custom orders.
On the other hand, Model Y buyers in Canada can avail a $7,500 credit on qualifying cash and financed purchases and leases delivered by September 30, 2025. Additionally, Tesla has significantly reduced the Model Y Long Range AWD price in Canada by about CAD 20,000 (around USD 14,484), likely due to sourcing from its Berlin Gigafactory. Delivery estimates for vehicles sourced from the Berlin plant are expected around September to October 2025.
It's important to note that there is no current federal tax incentive for Tesla EVs in Canada as of 2025. Provincial incentives vary and are limited.
The promotion for a free upgrade on new Model Y and Model 3 inventory vehicles in the United States has also been discontinued. Depending on the chosen upgrade, this can result in savings of up to US$2,000.
The one year of free Supercharging incentive in Canada is not available for Model Y. Customers who choose financing or pay in cash for a Model 3 in Canada, however, receive one year of free Supercharging.
The end date for the promotion varies for Model Y and Model 3. The promotion for Model Y ends on August 11, 2025, while Model 3 promotion ends on August 18, 2025.
With these changes, Tesla continues to offer attractive incentives to encourage EV adoption in Canada, while also addressing the challenges posed by tariffs and government policies.
| Model | Incentive in Canada | Additional Info | |---------------------|---------------------------------------------|----------------------------------------| | Model 3 | Unlimited free Supercharging for life (inventory only) | Covers charging in Canada and U.S.[1][4][5] | | Model Y | $7,500 credit (cash/finance/lease by Sept 30, 2025) | Price cut by approx. CAD 20,000; sourced from Giga Berlin; deliveries Sept–Oct 2025[2] |
- The adjustments in Tesla's EV incentives in the Canadian automotive industry reveal a shift towards financing options for Model Y buyers, offering a $7,500 credit for qualifying purchases and leases by September 2025.
- The technology sector in Canada appears to be supportive of Tesla's efforts to promote EV adoption, as the company continues to provide unlimited free Supercharging for life on Model 3 inventory vehicles.
- In the transportation sector, Tesla's decision to reduce the Model Y Long Range AWD price in Canada by approximately CAD 20,000 is evidence of the company's strategy to address tariff challenges and government policy shifts.
