Tesla Inc. (NASDAQ:TSLA) could be reaping the benefits of the China-Canada EV agreement despite earlier criticism from President Donald Trump following the deal.
Tesla Accounts For More Than 10% Of Chinese Imports
According to a report by Drive Tesla Canada on Saturday, citing data from Global Affairs Canada, over 2,910 EVs arrived in the country from China in May. The report then pointed to earlier news reporting Model 3 shipments arriving from China in Canada’s Ontario and Nova Scotia provinces.
Tesla didn’t immediately respond to Benzinga’s request for comment.
China Agreement
The agreement between Ottawa and Beijing sees an influx of over 49,000 Chinese-made EVs in the Canadian market at a 6.1% tariff. The number could extend to over 70,000 in the future.
Following the agreement, Stellantis NV (NYSE:STLA) and China’s Zhejiang Leapmotor Technology Co. Ltd. were reportedly discussing plans to manufacture Chinese EVs in the former’s plant in Ontario. However, the venture has faced stern opposition from Canadian lawmakers, including Ontario Premier Doug Ford.
Meanwhile, BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) had earlier applied for a permit to import its vehicles in Canada following the reduced tariff agreement between Ottawa and Beijing.
Tesla’s European Sales Rebound
The news comes amid a European sales rebound for Tesla, as the Elon Musk-led EV maker sold over 9,169 units during April, a 67.2% surge over April 2025's 5,483 units.
The EV giant's sales recently recorded an uptick, with investor Ross Gerber of Gerber Kawasaki saying that the Iran war could have prompted customers to shift to EVs amid soaring gas prices. Musk also recently hit back at critics of the company, touting the Model Y's sales.
Price Action: Tesla shares were down 0.33% at $434.35 during the after-hours trading session on Friday.
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