Tesla Sales in Canada Dropped 63.5% in 2025

 Tesla sold 63% fewer cars in Canada last year than it did in 2024, which can be explained by multiple factors.

• The automaker sold about 20,000 vehicles in Canada last year, down from about 55,000 in 2024.

• This has allowed General Motors to take the EV sales crown in the country.

• A shift away from EVs, the U.S-Canada trade war, and political motives have all contributed to this slump.

Amid a slowdown in electric vehicle sales in Canada, Tesla has been hit particularly hard, its sales dropping by more than 60% in 2025 over 2024.

Indeed, estimates from DesRosier Automotive Consultants and the Automotive News Research and Data Center suggest a reduction in the brand’s Canadian sales of around 63.5% year over year.

While Tesla doesn’t release its sales figures by country, these estimates show the company sold about 20,000 vehicles in Canada in 2025, down from close to 55,000 the year prior.

This can be explained in part by the cancellation of the $5,000 federal EV incentive and the sharp reduction of the Quebec provincial incentive back in January 2025, which contributed to a significant decline in the sales of all electric vehicles in the country.

In fact, Statistics Canada shows EV sales dropped 43% over the first three quarters of the year, the latest period for which data is available.

Obviously, there are other factors that have impacted Tesla’s sales enough to explain why its decline has been much more significant than the industry’s average.

This is made even more evident when considering that other EV-only automakers actually saw their sales increase over the same period, including Rivian, Lucid Motors, Polestar, and VinFast.

One of those factors is the Canada-U.S. trade war, which saw Ottawa impose 25% counter tariffs on U.S.-made vehicles that don’t comply with CUSMA in reaction to the Trump administration’s blanket tariffs.

Since most Tesla vehicles sold in Canada up to the middle of last year were manufactured in the United States, including the brand’s most popular Model Y compact crossover, this measure had a large impact on pricing.

Indeed, Tesla passed on the tariff costs to its buyers in Canada, which is why the price of the entry-level Model Y Premium suddenly went from $64,990 to $84,990.

In addition, the political involvement of the company’s CEO, Elon Musk, with the Trump Administration has turned off a lot of would-be buyers, especially since both the U.S. president and Musk himself began threatening Canada’s sovereignty early in 2025.

In fact, Tesla had to pull out of last year’s Vancouver auto show due to fears of violence and vandalism from protesters.

Later in the year, Tesla shifted its supply chain to source Model Y units for the Canadian market from Germany, circumventing Ottawa’s counter tariffs.

Combined with the addition of a new, stripped-down Standard trim level that brings the starting price of the Model Y down to $49,990, this should help improve Tesla’s sales in Canada, but it is too early to tell what sort of effect this will have.

In the meantime, General Motors took the top spot in electric vehicle sales in the country, thanks to its broad lineup of EVs that runs from the mass-market Chevrolet Equinox EV to the luxurious Cadillac Escalade IQ and the rugged GMC Hummer EV.

GM said it has sold 24,502 electric vehicles in Canada in 2025, which is a 22.1% decline from its 2024 figure of 31,460 that was driven by a rush in the last month from buyers who wanted to benefit from the higher provincial and federal incentives. Nevertheless, this reduction is about half that of the entire industry, and 40% less drastic than that of Tesla.