Tesla has stopped taking new orders for its two cheapest Model 3 trims in Canada, blaming strong demand and a lack of import quota for vehicles built in China. The company says ordering could resume in March 2027, but federal figures raise questions about that explanation.
As reported by Tesla North on Monday, Tesla’s Canadian website now displays the following message: “Model 3 Premium orders paused after high demand exhausted Tesla’s import quota. Ordering resumes if Govt of Canada issues more quota, expected March 2027.”
Both China-built Model 3 Premium versions are now unavailable to configure. The rear-wheel drive model starts at $39,490 CAD, while the all-wheel drive version costs $49,990 CAD. Both were advertised with payments starting at $483 per month.
That leaves the U.S.-built Model 3 Performance as the only version available to configure in Canada, starting at a much higher $74,990 CAD or $936 per month. That’s a $35,500 jump from the cheapest Model 3, which launched in Canada back in May at a surprisingly aggressive price.
Tesla says it has exhausted its import quota, but the latest figures from Global Affairs Canada suggest there’s still plenty of room under the country’s overall limit for Chinese-built electric vehicles.
According to federal utilization data updated October 9, only 328 vehicles had been recorded against the 33,397 available permits in the current six-month period, which began September 1.
The federal government currently issues import permits on a first-come, first-served basis to eligible automakers and importers. Its published rules do not establish a fixed quota for Tesla, although Ottawa reserves the ability to set aside portions for manufacturers.
There is an important distinction, however. The government’s utilization figures don’t necessarily reflect permits already issued for vehicles that have yet to arrive in Canada. The report also doesn’t identify individual automakers, making it impossible to determine Tesla’s position from the public numbers alone.
Back in September, we reported that nearly 16,000 Chinese-made EVs had entered Canada under the new trade arrangement, with Tesla believed to account for a significant share of those imports.
The restrictions follow Canada’s new trade arrangement with China, which took effect March 1, 2026. Ottawa agreed to allow 49,000 Chinese-built electric vehicles into Canada annually at a 6.1% tariff, replacing the previous 100% surtax for vehicles imported under the quota.
The agreement was widely seen as a potential win for Tesla, which already operates a major manufacturing facility in Shanghai and could quickly take advantage of lower Canadian tariffs.
During the first six months, 15,603 vehicles were recorded under the program, leaving 8,897 unused permits to carry into the current period. The second window runs through February 28, 2027.
For Canadians considering a Model 3, the immediate options are limited. Buyers can wait for the Premium trims to return or spend considerably more on the Performance model.
Would you wait until 2027 for the cheaper Model 3, or consider another electric vehicle?
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