Tesla has launched a new Model 3 Premium RWD trim in Canada starting at $39,490 CAD, a record-low price for the electric sedan in the country. The move is made possible by sourcing the vehicle from Giga Shanghai instead of Fremont, California. This marks the first time Tesla is selling China-made vehicles in Canada since the country imposed a 100% tariff on Chinese EVs in 2024. The Model 3 Performance price was reduced by 17% to $74,990 CAD, down from $89,990. This price gap creates a significant price gap with the Model 3 Long Range AWD. Tesla removed the Premium LWD from the Canadian lineup entirely. Shanghai-built Model 3 vehicles do not qualify for Canada’s $5,000 Electric Vehicle Affordability Program (EVAP) rebate, as China does not meet a free-trade agreement.