Tesla’s electric vehicle sales in Canada have crashed dramatically in 2025, with registrations falling 67% compared to last year. The company registered only 9,000 vehicles in the first half of 2025, down from more than 26,000 during the same period in 2024.
Quebec, once Tesla’s strongest Canadian market, saw the worst decline. Sales there dropped 87% in the first quarter of 2025, falling from over 4,000 vehicles to just 524 units. The situation got so bad that Tesla stopped importing new vehicles into Quebec entirely during early 2025. While Quebec’s overall EV market fell 45% in the first quarter, Tesla’s decline was nearly double that rate.
Tesla’s Quebec sales plummeted 87% in Q1 2025, nearly double the province’s overall EV market decline.
The sales collapse follows years of strong growth for Tesla in Canada. The company sold 20,799 units in 2021, marking its peak performance with over 119% year-over-year growth. Back in 2018, Tesla had sold 15,300 units, showing a massive 363% increase from the previous year. The company’s market share reached 1.27% of Canada’s automotive market in 2021.
Several factors contributed to the dramatic decline. Both federal and provincial governments removed EV rebates in key markets like British Columbia and Quebec. Tesla also faced public criticism over $42 million in delayed rebate claims it hadn’t submitted. CEO Elon Musk‘s political statements about Canada and his support for controversial policies damaged the brand’s reputation among Canadian buyers.
Trade issues added more problems. The Trump Administration announced a 35% tariff on goods from Canada, creating complications for Tesla’s business. Canada responded with a 25% tariff on American vehicles in April, further increasing prices for consumers. The company responded by importing vehicles from different locations. Tesla brought in China-made Model 3 and Model Y vehicles, with Canada importing 6,214 units worth $250 million from China in May 2025 alone. This mirrors Tesla’s performance in China where sales dropped 15% year-on-year to 61,662 units in May 2025, showing the company faces challenges in multiple key markets simultaneously.
The company also started importing Model Y vehicles from Germany to avoid certain tariffs. To enhance sales, Tesla cut the Model Y’s price by $20,000, bringing it below pre-tariff levels. Only the German-imported Model Y received this discount, while other Tesla models kept their original prices.
Whether these efforts will help Tesla recover its Canadian market remains uncertain.