Tesla Canada Executive Explains Why Model 3 Orders Are Paused Despite Unused EV Import Quota

Tesla Canada has shared further insight into why it paused Model 3 Premium orders in Canada, revealing that federal government officials have more influence over how import permits are distributed than the program's first-come, first-served structure might suggest.

Writing on LinkedIn Tuesday, Tesla Canada public policy executive Iain Myrans argued that Global Affairs Canada (GAC) exercises significant discretion in allocating the country's Chinese electric vehicle import quota, despite the program appearing to operate on a first-come, first-served basis.

“Global Affairs Canada is providing in advance the maximum number of cars OEMs can expect to bring in for a period,” Myrans wrote. “So, while the program outwardly looks like it is a first-come-first-served model, there is a lot more behind it.”

Tesla's Order Pause Context

Tesla stopped accepting orders for both China-built Model 3 Premium trims (Rear-Wheel Drive and All-Wheel Drive) on October 12, stating its allocation under Canada’s annual 49,000-vehicle Chinese EV import quota had been exhausted. The Premium variants, starting at $39,490, are now unavailable to order, while the United States-built Model 3 Performance remains available at $74,990.

However, Global Affairs Canada’s latest utilization report, updated October 9, shows just 328 vehicles have been imported under the second quota window that began September 1. This leaves 33,069 of the available 33,397 allocations unused—approximately 99% of the quota remaining.

Government Discretion in Permit Allocation

Myrans cited Section 8(1) of the Export and Import Permits Act, under which the minister decides how many permits are issued and on what terms. He noted that GAC can also hold back permits to ensure newcomers and other automakers receive a fair share of the quota.

“Global Affairs Canada is consulting with interested companies to optimize remaining quota availability and evaluate the quota’s implementation to inform a longer-term policy designed to catalyze new joint-venture investment on Canadian soil, with Canadian supply chains, and Canadian workers,” a GAC spokesperson confirmed in an exclusive statement to Drive Tesla Canada.

While the government confirmed it is reviewing quota distribution, it declined to confirm whether Tesla faces company-specific limits, citing commercial confidentiality considerations regarding individual shipment details.

Thousands of Permits Remain Unused

Under the Canada-China EV agreement, up to 49,000 qualifying vehicles can enter annually at a reduced 6.1% tariff. During the first six-month period (March to August 2026), only 15,603 of 24,500 available spots were claimed, with Tesla accounting for the majority of those used.

With more than 33,000 permits still available in the current window (September 2026 to February 2027), restricting Tesla’s access could leave a significant portion of the quota unused despite demonstrated demand for its Shanghai-built Model 3. While the government says its approach aims to ensure equitable access, it could ultimately limit EV sales rather than encourage them.

Tesla expects Model 3 Premium orders to resume in March 2027, when the first year of the quota program ends and the government could make additional allocations available.

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