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4w ago

Canada Freezes $43 Million in Tesla EV Rebates, Bans Company from Future Programs

The federal government cites suspicious rebate claims and U.S.-Canada trade tensions as reasons for the decision, launching an investigation into Tesla's actions.

Tesla vehicles are seen on display at the Canadian International AutoShow in Toronto, Ontario, Canada February 13, 2025. REUTERS/Carlos Osorio/File Photo
People attend a protest rally outside a Telsa dealership in Ottawa against CEO Elon Musk's political influence on Saturday, March 22, 2025. THE CANADIAN PRESS/Justin Tang
Minister of Transport and Internal Trade Chrystia Freeland leaves a cabinet meeting on Parliament Hill in Ottawa, Ontario, Canada, March 14, 2025. REUTERS/Patrick Doyle
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Overview

  • Transport Minister Chrystia Freeland announced that Canada has frozen $43 million in federal EV rebates claimed by Tesla and banned the company from future rebate programs.
  • The investigation focuses on Tesla's extraordinary rebate claims during the final days of the iZEV program, including reports of 8,000 vehicle deliveries over one weekend, which is deemed implausible.
  • The government revised eligibility criteria for future EV rebate programs, excluding Tesla vehicles as long as U.S. tariffs on Canadian goods remain in place.
  • Provinces such as British Columbia and Nova Scotia have already excluded Tesla from their own EV rebate programs, while Quebec's newly relaunched program still includes Tesla vehicles.
  • The decision reflects broader trade tensions between Canada and the U.S., with Tesla CEO Elon Musk's ties to President Trump adding further scrutiny to the situation.