Tesla has paused Canadian orders for the Model 3 Premium, the Shanghai-built version that sold for a record-low $39,490 CAD. The company says high demand exhausted its import quota and orders won't resume until March 2027.
But Canada's official quota tracker tells a different story. As of October 9, only 15,931 of 49,000 permits for Chinese-made EVs had been used, leaving 67% available. Imports of low-cost electric cars fell from 2,597 in August to seven in September and zero in October, suggesting Tesla stopped importing well before the cap was reached.
The likely explanation is that Ottawa quietly set aside quota for other automakers, despite the first-come, first-served policy. Global Affairs Canada has reserved the right to allocate portions to OEMs, including new entrants like BYD and Geely. Tesla's own wording — "Tesla's import quota" — hints at a company-specific cap, but no official allocation has been published.
The episode highlights the tension in Canada's policy: opening the door to Chinese EVs to boost competition while avoiding a Tesla monopoly. With the national cap set at 49,000 vehicles per year, one affordable sedan nearly exhausted Tesla's apparent share in months, prompting calls for a larger quota and more transparency.