Tesla Slashes Model Y Price in Canada by $20,000 — Plus New Diamond Black Paint!
Big news, Canada! In a bold move to win back EV buyers, Tesla has dropped the price of its Model Y by up to $20,000 — making it one of the most affordable premium electric SUVs in the country right now.
That’s not all. Tesla has also launched a sleek new Diamond Black paint option to add extra style to the deal.
Let’s break down what this means for you.
Why Did Tesla Cut Prices?
Tesla’s Canadian sales have been dropping sharply — down 67% year-over-year in early 2025, according to recent data. Rising prices, reduced incentives, and tough competition from other EV brands pushed buyers to wait or look elsewhere.
But now, Tesla is back in the spotlight. Here’s why the price slash happened:
- European deliveries: Tesla is now reportedly importing the Model Y from its Berlin Gigafactory instead of the U.S., helping avoid Canadian tariffs on American-made EVs.
- iZEV rebate comeback: With the new price point, the Model Y is once again eligible for Canada’s federal EV rebate program, saving buyers even more money.
- Competition heating up: Brands like Hyundai, Ford, and GM are ramping up affordable EV options — and Tesla is making sure it stays ahead.
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What’s New with the Model Y?
The Model Y Long Range AWD was previously priced at CA$84,990. Now? It’s just CA$64,990, before any rebates.
Buyers can now also choose the new Diamond Black paint, a premium color that first debuted in the U.S. earlier this year. It’s a rich, glossy black that adds a luxury feel to the vehicle — and it’s now available in Canada for an additional $2,000.
Tesla Slashes Model Y Price by $20,000 in Canada & Unveils Sleek Diamond Black Finish
Rebate Eligibility: Back in the Game
The lower price means the Model Y is now within range of Canada’s iZEV rebate — offering up to $5,000 in federal EV incentives, plus additional provincial incentives like Quebec’s Roulez Vert.
In total, buyers in Quebec could save up to $12,000 when combining Tesla’s discount and government rebates.
When Will It Arrive?
Tesla’s website currently shows September to October 2025 delivery for new Model Y orders in Canada.
The new delivery timeline, paired with price cuts, strongly suggests that Model Ys are being shipped from Germany, where they qualify under a different tax and manufacturing structure.
What Does This Mean for Buyers?
| What Changed | Old | New |
|---|---|---|
| Model Y Price | CA$84,990 | CA$64,990 |
| EV Rebate Eligibility | Not eligible | Eligible |
| Diamond Black Paint | Not available | Available for CA$2,000 |
With this change, Tesla is targeting buyers who paused or canceled orders earlier this year due to rising prices and lost rebates.
Already placed an order? Good news — Tesla is reportedly refunding the difference automatically for affected customers.
Final Thoughts: Is Now the Right Time?
Yes — if you’ve been waiting, this is your moment.
Tesla’s price drop brings one of the top EVs in Canada back within reach of everyday buyers. Add the return of rebates, a stylish new paint option, and expected European build quality — and it’s clear this is Tesla’s strongest Canadian offer of 2025 so far.
Compare the Model Y to other top electric SUVs in Canada
Let’s Hear From You!
Would you buy a Tesla Model Y at this price?
Drop your opinion in the comments!
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