Tesla has stopped taking orders for the low-priced Model 3 in Canada. [Photo: Reve AI]

Tesla has stopped taking orders in Canada for the Model 3 Premium. It said it has exhausted its import quota for China-made electric vehicles, but Canadian government tallies show about 67 percent of the annual quota remains, drawing attention to the background.

On Oct. 13, EV-focused outlet Electrek reported that Tesla removed both the Model 3 Premium rear-wheel-drive and all-wheel-drive versions from its Canada order page. The only Model 3 that can currently be ordered is the Performance all-wheel-drive model. Tesla said the import quota was exhausted due to strong demand and said it expects to resume orders in March 2027 if the Canadian government issues additional quota.

The Model 3 Premium whose orders were halted is produced at Tesla’s Shanghai plant. Tesla launched the rear-wheel-drive version in May at 39,490 Canadian dollars (about 37.2 million won). Previously, the cheapest Model 3 available to order in Canada was the Long Range all-wheel-drive model produced at its Fremont plant in the United States, priced at 79,990 Canadian dollars (about 75.4 million won). Canada applied a 25 percent retaliatory tariff to U.S.-made vehicles. Tesla also cleared remaining inventory of U.S.-made Model 3 vehicles in Canada in March.

But Canadian government public data differ from Tesla’s explanation. Canada set the annual import quota at 49,000 vehicles after cutting tariffs on China-made electric vehicles in January to 6.1 percent from 100 percent. The quota applies from March each year through February the following year, and import permits are, in principle, issued on a first-come, first-served basis.

According to a tally as of Oct. 9 from Canada’s export and import controls system, 15,931 permits have been used since March 1. That leaves 33,069 permits within the annual quota. The current half-year quota is 33,397 vehicles, combining a base allocation of 24,500 vehicles and 8,897 unused permits carried over from the previous half-year.

Import statistics also showed a change. Imports of electric vehicles with an import price of 35,000 Canadian dollars (about 33 million won) or less rose from 465 vehicles in June to 4,743 in July and 2,597 in August, before plunging to 7 in September. October imports were 0 vehicles based on the latest tally. This price band is classified by import price, not retail price.

It has been suggested that a separate import limit may have been applied to Tesla. Global Affairs Canada said it reviews permit applications and issuance to distribute quota fairly among eligible applicants, and it can allocate part of the volume separately to automakers, including new entrants. The Canadian government did not disclose company-by-company allocations or timing.

It is also possible Tesla’s order backlog has already exceeded the expected volume of import permits. Either way, consumers seeking to buy the 39,490 Canadian dollar Model 3 are expected to wait at least until spring 2027.

The situation also raises questions about the quota size of 49,000 vehicles a year. Canada plans to expand the volume to 70,000 by 2030, but as demand for low-priced China-made electric vehicles grows rapidly, debate could continue over whether the current system reflects market demand sufficiently.

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#Tesla #Canada #Model 3 #Electrek #Global Affairs Canada
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