Tesla introduces price reductions on initial Model Y demonstration units available in the United States.
In a move to revive sales in Canada following the impact of tariffs and trade tensions, Tesla has announced a substantial discount on its Model Y electric vehicles. The new price for the Model Y Long Range is now CAD 64,990, a reduction of CAD 20,000 from the previous price.
This price adjustment, effective as of July 2025, brings the cost of the Model Y even below the pre-tariff level, counteracting the 100% import tariffs on Chinese vehicles that were previously applied [1][2]. Tesla is believed to be importing Model Ys from Gigafactory Berlin in Germany, as suggested by delivery estimates in the Canadian online configurator, which indicate expected delivery times around September to October 2025 [2].
New orders for the Model Y placed now are projected for delivery in the same timeframe, suggesting that the current stock is either very low or depleted, and Tesla is preparing shipments from overseas to restock Canadian inventory [2].
In addition to the price decrease, Tesla has introduced a new colour option, Diamond Black, available for an extra CAD 2,000 [1]. This move is seen as an effort to encourage new purchases through expanded customization options.
The discounted Model Y vehicles are part of Tesla's demo fleet, which have been used for test drives and showroom display. The discount on these demos can range between US$600 to US$1,200, depending on the mileage of the vehicle, with those closer to 2,000 miles or more eligible for up to US$1,070 in savings [3].
It's worth noting that as of now, there is no inventory of the Model Y in Canada, neither of the legacy nor the refreshed version [4]. However, Tesla has a limited selection of Launch Series Model Y demos available at a discount [5].
Tesla's 1.99% financing offer for the Model Y Long Range AWD is also available until June 16 [6]. This offer, combined with the significant discount, presents an attractive proposition for those considering an electric vehicle purchase in Canada.
| Aspect | Details | |--------------------|--------------------------------------| | Current Model Y price (Long Range model) | CAD 64,990 | | Discount amount | CAD 20,000 off previous price | | New color option | Diamond Black (extra CAD 2,000) | | Estimated restock/delivery | September – October 2025 | | Source of inventory | Likely imports from Gigafactory Berlin | | Financing offer validity | Until June 16 |
[1] Tesla Canada (2025). Retrieved from https://www.tesla.com/ca/models/model-y [2] Electrek (2025). Retrieved from https://electrek.co/2025/07/01/tesla-model-y-canada-price-cut-gigafactory-berlin-deliveries/ [3] Tesla (2025). Retrieved from https://www.tesla.com/support/vehicle-demos [4] Tesla Canada (2025). Retrieved from https://www.tesla.com/ca/models/model-y [5] Tesla (2025). Retrieved from https://www.tesla.com/support/vehicle-demos [6] Tesla Canada (2025). Retrieved from https://www.tesla.com/ca/financing
- With the new price reduction, the Model Y Long Range is now more affordable for many consumers, making electric vehicles more accessible in various industries, including finance, transportation, and lifestyle.
- The reduced price and the introduction of the Diamond Black color option are likely to attract potential buyers, given the expanding customization options in the automotive industry.
- The technology sector, particularly electric-vehicle manufacturers, will closely monitor Tesla's moves as the subsidized Model Y could spur demand for electric vehicles within the Canadian market.
- Tesla's discounted demo fleet of Model Y vehicles offers a unique opportunity for interested buyers to test drive these cars before making a purchase, merging the test drive experience with the affordable pricing of the electric vehicles.
