Canada’s new trade agreement with China has cracked open the door for Chinese-built EVs, and the first cars are already landing on Canadian soil. The government has not said which brands are coming through, but the early money is on Tesla.

The math behind the deal is straightforward. EVs imported from China once faced a punishing 100 percent additional tariff. Now they pay just 6.1 percent. The catch is volume. For the program’s first year, imports at the reduced rate are capped at 49,000 units, split into two halves: 24,500 from March through August, and another 24,500 from September through February.

Read: Canada’s New Chinese EV Quota Has A Tesla-Sized Problem Already

Data from Global Affairs Canada reveals that in May, 2,910 eligible vehicles were imported into Canada, accounting for just under 12 percent of the quota for the current six-month period. The government has made no mention of which brands received the lowered tariffs, but Tesla is thought to have accounted for the vast majority of them, given that it’s now building Model 3s at its Shanghai factory and exporting them to Canada.

By comparison, most of Tesla’s Chinese rivals are still early in their Canadian expansions and aren’t ready to export yet. According to Drive Tesla Canada, the only non-Tesla EVs from China to reach Canada in May were 18 examples of the high-end Lotus Eletre.

Others Are Coming From China Too

From the moment the new tariff quota system was announced, Tesla was expected to take early advantage of it. In addition to Geely starting to import Lotus Eletres from China, the group also owns the Volvo and Polestar brands, both of which already sell their vehicles in the country. Models from these two brands are also expected to benefit from the lowered tariffs, although it doesn’t yet appear that they’ve done so.

As we reported last month, a slew of new brands are gearing up to launch in Canada. Among these is Chery, which is expected to soon roll out vehicles from its Jaecoo brand nationwide. In addition, it’s understood that BYD wants to open as many as 20 locations in Canada this year and may even build its own local factory.

Geely will also grow its footprint beyond the Lotus, Volvo, and Polestar brands. It is readying Zeekr for a local launch and has already started hiring for senior-level positions in Toronto.

Tesla has never been known for offering particularly exciting or flamboyant paint schemes, generally opting for subtlety over pizzazz. However, the Model 3 and Model Y have just been updated with two new shades of blue in the United States, and both look superb.

The first new color is dubbed Marine Blue, and it’s available for the Premium Rear-Wheel Drive and Premium All-Wheel Drive versions of the Model 3 and Model Y. Marine Blue is a deep shade that replaces Deep Blue Metallic, which was brighter and a little more eye-catching.

Read: Americans Pay $37K For The Cheapest Tesla, Canada Got A Chinese One For $29K

As before, those shopping on a budget and looking to buy the entry-level Rear-Wheel Drive or All-Wheel Drive versions of the Model 3 or Model Y don’t get this new color and still only have Stealth Grey, Pearl White Multi-Coat, and Diamond Black to choose from.

In the US, Marine Blue adds $1,000 to the price of applicable Model 3s and Model Ys. In Canada, it costs CA$1,300 (US$940).

Exclusive Performance Color

The second new color introduced by Tesla is Frost Blue Metallic. It’s exclusive to the Model 3 Performance and Model Y Performance. This isn’t the first time this color has been offered by Tesla, as it was previously available on the Model S and Model X before those models were discontinued. Of all the colors that Tesla offers, Frost Blue Metallic might be our favorite, alongside Ultra Red.

What’s more, Frost Blue Metallic is a no-cost option in the US. It’s also been launched for the Model 3 Performance in Canada, though it’s not yet clear whether it will be added to the Model Y Performance locally.

Electric vehicles have plenty of advantages over combustion cars but all of them have an uncomfortable truth sitting under the sheet metal. Engines wear out over time, but the size of their gas tank doesn’t shrink. EVs will suffer battery and range degradation no matter what. The only question is how bad it’ll get before the battery fails. One seven-year-old Tesla still running on its original battery is providing some insight.

At over 380,000 miles (610,000 km), one Tesla Model 3 owned by the YouTube channel Drive Protected is going strong long after most vehicles (combustion or EV) are long dead. When new, it offered 240 miles of range. Today, a full charge shows 158 miles. That’s an 82-mile drop, or about 34.2 percent gone. There’s really no sugarcoating it. That’s substantial degradation and puts the battery well below 70 percent of its original capacity.

Read: Tesla’s Longest Range EV Is Here But Not For You

That said, it’s not quite the death sentence you might expect. The car was put through a real-world highway test at a steady 68 mph, returning 138.3 miles before hitting zero. That’s not impressive on paper, but it’s far from unusable. For shorter commutes or city duty, it’s still very much a functioning vehicle.

The numbers back that up. Over the test, it consumed 32.4 kWh. That’s well below the roughly 49 kWh it would have had when new. That aligns with the reduced range estimate and confirms the degradation isn’t just theoretical.

Still, despite losing over a third of its capacity, nothing else about the car appears fundamentally broken. No catastrophic failure, no sudden shutdowns. It’s just a steady erosion of range over time, and about double the miles of most cars when they head to the scrap yard.

In a way, this car is making a case for and against EVs. Yes, battery degradation is real, measurable, and significant. Making batteries cheaper and easier to replace in the near future is key to EV sustainability and longevity. But it also shows that even after mileage that would retire most vehicles, an EV can keep going, albeit with a shorter range.

As expected, Tesla has become the first EV maker to begin selling Chinese-made models in Canada after the two countries finalized a major trade deal earlier this year. It’s good news for Canadian car buyers, who now get access to Tesla models priced well below their American counterparts. In fact, it’s the cheapest Tesla EV ever sold in North America.

Thanks to the new trade deal, up to 49,000 EVs built in China can be imported into Canada at a reduced tariff rate of 6.1 percent, down from the 100 percent tariff imposed in 2024. Canadian officials began issuing permits for the first 24,500 vehicles in March, and Tesla moved quickly to capitalize.

Read: Canada Could Give China’s Biggest Carmaker A Backdoor Into The US Market

By importing from China, Tesla has reintroduced the entry-level Model 3 Premium RWD to Canada. It is priced from just CA$39,490 before delivery, or around US$29,007 at current exchange rates, undercutting the most affordable Model 3 in the US, the standard RWD model that starts at US$36,990 before taxes and delivery fees. The Shanghai-spec Model 3 has a quoted driving range of 463 km (288 miles) and can go from 0 to 100 km/h (62 mph) in 5.2 seconds.

Before the deal took effect, the most affordable Model 3 available in Canada was the Long Range AWD shipped up from Fremont, California, with a starting price of CA$79,990 (US$58,700). It isn’t a spec-for-spec comparison, but Tesla has effectively cut its Canadian entry point in half overnight.

Performance Gets A Price Cut

Canadian buyers can also order the Model 3 in Performance guise, now priced from CA$74,990 (US$55,050). That marks a 17 percent drop from CA$89,990 (US$66,070), bringing the Canadian price roughly in line with the US$54,490 sticker American buyers pay for the same trim. Tesla has not confirmed where it will source Model 3 Performance models for the Canadian market, though reports suggest Fremont remains the likely origin.

The only downside of Tesla now importing some Model 3s from China is that these models do not qualify for Canada’s Electric Vehicle Affordability Program (EVAP) rebate, valued at $5,000, according to Drive Tesla.

It remains unclear how many of the initial 24,500 permits Tesla will lock down, though Canadian officials have confirmed they’re being issued on a first-come, first-served basis. Unless rivals like Volvo and Polestar move quickly to get their own Chinese-built EVs across the Pacific, Tesla looks poised to walk away with the lion’s share.