- Tesla removed Model 3 inventory from its Canadian site.
- Canada began issuing 24,500 reduced-tariff EV permits.
- Rivals may have to wait until September for more permits.
It seems increasingly likely that Tesla will be among the first beneficiaries of Canada’s reduced 6.1 percent tariff rate on EVs imported from China. Just days after Canada began issuing the first batch of permits at the lower duty, Tesla quietly removed its available inventory in Canada.
The change reportedly occurred over the weekend, just hours before Ottawa formally reopened imports of Chinese-built EVs.
A recent review of Tesla’s Canadian website shows that there are no longer any Model 3s in the company’s inventory available to browse. Buyers can now only place an order for a new Model 3 rather than select one that has already been built and is sitting in stock.
Read: Canada Hands Out First China EV Permits, But Not Everyone Is Getting A Turn
This news may not seem all that significant, but a report from Drive Tesla suggests there is more behind the move. It claims that American-made Model 3s previously listed in Tesla’s Canadian inventory are being sent back to the United States.
Chinese Teslas Coming To Canada?
There’s no official explanation from Tesla about why this is happening, but the timing likely isn’t coincidental. As of March 1, Canada has started issuing the first batch of 24,500 permits for Chinese-made EVs at the reduced 6.1 percent tariff, down from the normal 100 percent. These permits are being allocated on a first-come, first-served basis.
If reports about Tesla’s inventory are true, it seems likely that the company has already put the pieces in place to start building Canadian-spec Model 3s in China to export them, snapping up as many of the available permits it can.
Most Model 3s sold in Canada are built in the United States, although Tesla had previously exported the sedan from China before the tariff hike. With the reduced rate now in place, Tesla appears well positioned to benefit early from the updated trade arrangement between China and Canada.
Geely-owned Volvo and Polestar could also be among the first brands to reintroduce Chinese-built EVs into Canada at the lower rate, but Tesla may have moved first. The same report suggests that Tesla could theoretically secure all 24,500 permits available through August 31, as Canada has not imposed a per-brand cap in this initial phase.
If that happens, rival brands may be forced to wait until the second allocation window opens in September, when any unused permits from the first phase would also roll over.
