Police began the investigation around 4 a.m. Saturday after they were contacted by gondola staff, according to CityNews in Vancouver.
"We believe the cables were cut and this was a deliberate act of vandalism," Inspector Kara Triance, with Squamish RCMP, told the Canadian Broadcasting Corporation.
The gondola, which ascends over a mile to the Summit Lodge, was not operating at the time of the incident.
Most of the cars, which can hold eight people, crashed to the ground, littering the steep slope. Six of the 30 gondola cabins were in upper and lower stations and were not affected.
Police are canvassing the area looking for witnesses.
Sea to Sky is also conducting an investigation into the cable manufacturer, according to CBC. The cable affected is roughly 2 inches in diameter and Sea to Sky had recently had maintenance work done on the line, according to CNN.
The website for the Sea to Sky Gondola says that it will be closed "for the foreseeable future due to a major lift incident."