Tesla could benefit as Canada reopens door to China-made EVs

Canada will allow up to 49,000 China-made electric vehicles a year at a 6.1% tariff, restoring limited market access that had largely been closed since 2024. The article reports Tesla prepared earlier by upgrading its Shanghai plant to build Canada-specific vehicles and could restart China-to-Canada shipments faster than some rivals.

Canada has announced a trade deal that sharply lowers tariffs on some electric vehicles made in China and reopens limited market access that had been largely shut since 2024. Under the arrangement, Canada will permit up to 49,000 China-built EVs a year at a 6.1% tariff. The change includes an allocation rule that reserves half the quota for vehicles priced under 35,000 Canadian dollars. The article notes Tesla upgraded its Shanghai factory in 2023 to produce Canada-specific versions of the Model Y and that those exports stopped in 2024 when tariffs rose. Key facts: - Canada will allow up to 49,000 China-made electric vehicles annually at a 6.1% tariff, down from a previous 100% level. - Half of the import quota is reserved for vehicles priced under 35,000 Canadian dollars. - The article reports Tesla upgraded its Shanghai plant in 2023 and had been exporting China-built vehicles to Canada until 2024. - Analysts cited in the article say Tesla could resume China-to-Canada shipments faster than some competitors due to its Shanghai production and established Canadian sales network. - The article mentions a TipRanks consensus rating described as mixed among analysts, without specific targets. Summary: The change restores limited imports of China-made EVs to Canada and creates an entry route for manufacturers with China production. Analysts cited in the article say Tesla's earlier preparations and sales presence in Canada could let it adjust more quickly; how quota levels and allocations evolve is undetermined at this time.