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Tesla says it is pausing orders for its Chinese-made sedan Model 3 Premium in Canada, citing a high demand for the vehicle that used up its import quota from China. Statistics from the federal government show that the overall quota for 49,000 imported Chinese electrical vehicles during the 12 months beginning March 1 has not been used up.
THE CLAIM
A banner appearing on top of Tesla’s website for its Model 3 claims that orders for Premium are paused after “high demand exhausted Tesla’s import quota,” alluding to the government of Canada’s partnership with China to import 49,000 electric vehicles a year at a lower tariff of 6.1 per cent from the previous 100 per cent.
The banner added: “Ordering resumes if Govt of Canada issues more quota, expected March 2027.”
Its Model 3 Performance vehicles, which are more expensive than Premium, are still available to Canadians.
THE FACTS
The federal government in January reached a deal with Beijing to slash tariffs on 49,000 Chinese EVs in exchange for China dropping duties on canola seeds.
That brought tariffs back down to single digits from 100 per cent duties on Chinese EVs imposed in late 2024. Back then, former prime minister Justin Trudeau’s government had argued cheap, heavily subsidized EVs being sold in the North American market constituted a threat to the auto sector.
The quota for 49,000 EVs is split up in two six-month periods: March 1 to Aug. 31, 2026, and Sept. 1, 2026 to Feb. 28, 2027. The first period allotted 24,500 units, while the current period would allow 24,500 units plus any unused units from the previous period, according to the federal Department of Global Affairs.
During the first six months, Global Affairs Canada says 15,603 electric vehicles were imported from China. That means 8,897 units will roll over in the current period, increasing the quota for the second half to 33,397 units.
The quota was implemented on a first-come, first-served basis for an initial period of six months. It is not clear whether the second half of the program is still running on a first-come, first-served basis, and Global Affairs did not immediately respond to questions about the timeline.
For the month of September, only 328 Chinese EVs were imported, according to Global Affairs.
Global Affairs spokesperson Rachael Dolan said in an email the agency does not disclose the names of companies or details of any shipments, “including anticipated quota use, due to commercial confidentiality considerations.”
But Prime Minister Mark Carney has said most Chinese EVs entering Canada are Teslas. “Historically, they’re all Teslas. It looks like most of the ones that’ll come in are Teslas as well in the short term,” he said at the Economic Club of New York on May 28.
Daniel Ross, director of strategic market insights at auto data tracking company Canadian Black Book, estimated 97 per cent of all Chinese vehicles that were imported this year were Teslas.
The company’s data showed 259 Lincoln Nautilus Hybrids, 18 Lotus Eletres and an estimated 200 Polestar 2s were shipped between March and September 2026. The remainder were estimated to be Teslas, he said. It’s unclear how many of those were Tesla Model 3 Premiums.
Tesla did not respond to questions about the pause.
Tesla already had a strong presence for its Chinese EVs, even before Ottawa allowed them in Canada — and before the federal government imposed the 100 per cent tariff.
A 2024 RBC report shows total EV imports from Shanghai amounted to $2.3 billion, or 13.3 per cent of total imports in 2023, a massive increase from $116 million in 2022.
The automaker manufactures Model 3 and Model Y vehicles at its Gigafactory Shanghai plant that opened in 2019 — its first factory abroad, according to Tesla’s website. The Shanghai plant has a capacity to produce about 950,000 Model 3 and Model Y vehicles a year, while its California plant produces about 550,000 vehicles, according to Tesla’s second-quarter 2026 update.
In Canada, the starting price for the Chinese-made Model 3 Premium is close to $40,000, and many vehicles started arriving in full flow this summer, according to DesRosiers Automotive Consultants Inc.’s September auto sales report.
Prices are significantly lower compared to the $73,000 starting price for the Model 3 Performance, according to Tesla’s website.
In the second year of the EV tariff deal, 10 per cent of the quota will be reserved for vehicles under $35,000. Tesla does not have EVs under $35,000 at the moment.
This report by The Canadian Press was first published Oct. 16, 2026.
Ritika Dubey, The Canadian Press
