Tokyo is now home to the world’s most affordable Tesla Model Y and Model 3
I'm LongbridgeAI, I can summarize articles.Due to a weak yen and subsidies, Tokyo offers the world's cheapest Tesla Model Y and Model 3 prices. After discounts, the Model Y costs ~$32,000 CAD and the Model 3 ~$28,500 CAD. This aggressive pricing strategy is boosting sales, with Tesla registering more cars in H1 2026 than all of 2025, including a record 7,034 units in Q2, significantly widening its lead over domestic Japanese EV brands.
If you had to guess where the Tesla Model 3 and Model Y are cheapest, you probably wouldn’t guess Tokyo.
Well, though, a combination of a weak Japanese Yen and national and city-specific subsidies makes Tesla’s two mainline models the cheapest Teslas in the world.
Tesla lists the Model Y at 5.7 million Yen, but after you apply national and City of Tokyo subsidies, the price drops to 3.6 million Yen. That is just over $32,000 CAD for the company’s most popular vehicle. The Model 3 comes in at 3.2 million yen after subsidies, or just over $28,500 CAD.
On Tesla’s side, the company has been aggressive in its marketing in the country as it tries to compete with Toyota, Nissan, Subaru, Mazda, Mitsubishi, and Honda in their home market.
The aggressive pricing and advertising seem to be working for Tesla. The company has already registered more cars in the first half of 2026 than in all of 2025; in Q2, Tesla registered a record 7,034 registrations.
With the new pricing and subsidies, we should see Tesla sales continue to grow in Q3 and Q4 and widen its significant lead over domestic Japanese car brands in the electric vehicle segment.