News Summary

Tesla has announced a significant price reduction for its Model Y SUV in Canada, lowering it by $20,000. This move comes as a response to a severe decline in sales, particularly in Quebec, following a 25% tariff imposed by the Canadian government on U.S. imported vehicles. The price cut is part of Tesla’s strategy to adapt to the ongoing trade tensions, which have impacted its Canadian operations. To circumvent the tariffs, Tesla has shifted the production of the Model Y for the Canadian market from the U.S. to its Gigafactory in Berlin, Europe. Consequently, the Model Y is now available for $64,990, which is cheaper than the pre-tariff price hike but still slightly higher than its cost at the beginning of the year. The deliveries of the new Model Y units are expected to occur between September and October.