Tesla Cuts $20,000 Off Model Y to Stop Freefalling Sales

Tesla continues to play yo-yo with its prices, and not just a little.

As you know, the electric vehicle manufacturer's sales are plummeting in many parts of the world, including Canada where S&P Global Mobility reports a 67% drop in registrations. They amounted to approximately 9,000 in the first half of 2025 compared with just over 26,000 during the same period in 2024.

• Also: RAV4 or Model Y: Which One Was the World’s Best-Selling Vehicle in 2024?
• Also: Tesla Raises Prices 13-22 Percent in Canada Due to Tariffs

This is the result of multiple factors, of course. The federal government’s incentive program ended abruptly on January 13, Quebec's was suspended in February and March, and other provinces removed Tesla from their lists of eligible vehicles. CEO Elon Musk's actions, including his role in the Trump administration, were a major detriment, too, as were major price hikes in February and April.

In response to the Canadian countertariffs on U.S.-built vehicles, Tesla Canada decided this spring to raise prices across its entire lineup by 13-22%. Consequently, the revised and improved 2025 Model Y jumped by $15,000 for the only available configuration (Long Range AWD), going from $69,990 to $84,990.

$20,000 Off

It’s easy to see why Canadians have largely shunned the vehicle and Tesla in general. In an effort to boost sales, the Model Y’s price has just been cut by 23.5% to $64,990, a reduction of $20,000. Not only that, but customers in Quebec will now be entitled to the $4,000 incentive from the Roulez vert program since the price is below the $65,000 limit.

In addition to chassis and interior enhancements, the 2025 Model Y offers 526 km of range and 0-100 km/h acceleration in 4.8 seconds. The optional 20-inch wheels ($2,600) reduce maximum range to 488 km. Customers can also add a black and white interior ($1,300) and the Full Self-Driving system ($11,000).

According to Tesla Canada’s online configurator, a brand new unit ordered today is expected to be delivered in September or October. The delivery time is much longer than usual, suggesting that units are now imported from Berlin, Germany rather than the U.S.

The faster and more powerful Model Y Performance is still nowhere in sight. Ditto for the Long Range RWD variant.