NEW YORK, Jan 20, 2026, 09:33 EST — Regular session
- Tesla shares edged down roughly 0.2% in early trading amid a broader pullback in market risk appetite.
- Analysts say Canada’s new import quota might allow Tesla to resume shipments of certain China-made models to the Canadian market.
- Another graphite supply issue with Syrah Resources is still a near-term concern.
Tesla shares slipped in early U.S. trading Tuesday, trimming premarket declines as investors weighed new trade news and a policy change in Canada that might unlock a supply channel for the automaker.
Canada’s shift from a full 100% tariff on Chinese-made EVs to a quota system paired with a much lower duty could open the door for Tesla to restart shipments from its Shanghai factory — its largest and most efficient plant — into a market where it already has retail and service operations. 1
Canada’s new deal, announced last week, will permit up to 49,000 vehicles annually from China at a 6.1% tariff, with the quota possibly rising to 70,000 within five years, Reuters reported. “This new agreement could allow resumption of those exports rather quickly,” said Sam Fiorani, vice president at AutoForecast Solutions. Yale Zhang, managing director at Shanghai-based consultancy AutoForesight, noted Tesla’s simpler lineup and production flexibility could help it channel inventory to markets with the best cost advantage. 1
Tesla established its Shanghai factory in 2023 to produce a Canada-specific Model Y and started shipping the vehicles to Canada that same year, the report noted.
Exports halted once Ottawa slapped on 100% tariffs in 2024. Tesla responded by rerouting Model Y shipments from its U.S. and Berlin plants, Reuters reports.
Investors are now focused on how fast Tesla can shift gears and what it will be able to deliver. According to the report, the Model 3 relies more on parts from China, whereas the Model Y units headed to Canada have come from Berlin.
Here’s the snag: half of Canada’s quota is set aside for vehicles costing less than 35,000 Canadian dollars, and Tesla’s lineup falls above that mark, Reuters reported.
The shift could create a door for Chinese brands, despite many not having direct sales operations in Canada. Reuters pointed to BYD and Nio as competitors without a retail footprint there, while Volvo and Polestar have already exported China-made cars to the Canadian market.
Tesla had yet to reply to Reuters’ request for comment on the Canadian policy change, the report noted.
Australia’s Syrah Resources announced it has agreed with Tesla to push back, for a third time, the deadline to fix an alleged breach of their graphite supply deal linked to Syrah’s Vidalia, Louisiana site. The new cure deadline is set for March 16, 2026, pending approval from the U.S. Department of Energy. Tesla still holds the right to end the agreement if the graphite fails to meet specs by Feb. 9, Syrah said. 2
Macro factors weighed heavily as U.S. stock futures dipped following President Donald Trump’s renewed threats of tariffs on eight European countries tied to the Greenland dispute. The move sparked fresh uncertainty for risk assets early in the week. 3
However, the Canada angle isn’t a straightforward victory. Quota limits, the price carve-out, and potential policy changes still threaten to cause setbacks — and supply chain headaches over battery materials remain a real risk.
Coming up: Tesla’s quarterly report. According to its investor relations calendar, the fourth-quarter 2025 earnings will be announced Jan. 28. Investors will be watching closely for insights on pricing trends, regional demand shifts, and logistics—especially if Canada re-emerges as a significant market for Shanghai-built vehicles. 4
