Tesla (TSLA) is raising prices for its electric vehicles sold in Canada by as much as $9,000 beginning on Feb.1 of this year.
The automaker led by Elon Musk says that prices for its Model 3 electric vehicle will increase by up to $9,000, while prices for its Model Y, X and S vehicles will rise by up to $4,000.
Tesla has not said why it is suddenly raising prices within Canada. However, the move comes amid rising trade tensions with the U.S. and threats of American tariffs on Canadian imports.
The increased costs of a Tesla vehicle in Canada also coincide with the end of Quebec electric vehicle incentives that were worth up to $4,000 per car.
Federal government electric vehicle incentives worth up to $5,000 ended on Jan. 12 of this year and Transport Canada has not said if or when the program might restart.
Currently, Tesla Model 3 and Model Y electric vehicles, the company’s cheapest models, sell for average prices of $55,000 and $60,000, respectively.
Tesla has a history of adjusting the pricing on its electric vehicles around government incentives and policy changes, including in countries such as the U.S. and China.
In 2023, Tesla lowered its prices by up to 20% to qualify for U.S. and Canadian government incentives placed on electric vehicles.
Tesla’s stock has gained 98% over the last 12 months to currently trade at $412.38 U.S. per share.
