Canada Freezes $43M in Tesla EV Rebates, Bars Future Incentives Over Tariff Dispute

Transport Minister Chrystia Freeland announced the suspension, citing rebate irregularities and U.S. trade tensions as key factors.

The Canadian government has frozen $43 million in Tesla EV rebate payments and barred the company from future federal rebate programs.
Each rebate claim will undergo individual investigation to determine validity before any payments are made.
The decision follows Tesla filing 8,653 rebate claims in a 72-hour period, raising concerns about the feasibility of delivering such a high volume of vehicles.
Canada’s actions are partly in response to U.S. tariffs imposed under President Trump and Tesla CEO Elon Musk’s ties to the Trump administration.
Several provinces, including British Columbia and Nova Scotia, have also excluded Tesla from their rebate programs, aligning with the federal government’s stance.