Reuters reports that the Canadian federal government has preemptively banned Tesla from eligibility for any future Incentives for Zero-Emission Vehicles (iZEV) programs. Transport Canada will review the $43 million in Tesla rebate claims that are currently pending to determine their validity.
We reported in January that Canada’s federal EV inventive program, similar to the one offered by the IRS in the United States, was suddenly paused indefinitely because it ran out of money. When it was in effect, it offered Canadian EV buyers an incentive of up to CA$5,000.
The freeze on Tesla rebates is seemingly motivated by spite of the automaker’s CEO Elon Musk. Musk is a close ally of President Trump, who has angered Canadian politicians with his tariff agenda and advocacy for making Canada America’s 51st state. Transport Minister Chrystia Freeland said Tesla vehicles won’t be eligible for iZEV programs as long as “illegitimate and illegal U.S. tariffs are imposed against Canada.”
Another justification for the freeze is a suspicious number of rebate claims from Tesla in the final days that the iZEV program still had funding in January. In total, 8,669 rebate claims amounting to CA$43.2 million in public subsidies were filed between January 10th and 12th, 2025, including one Tesla store in Quebec City that filed more than 4,000 EV claims during that weekend alone. To put those numbers into perspective, Tesla sold an estimated 45,000 units in Canada during the entire 2024 calendar year.
Although the federal iZEV program is on hold, there are still provincial EV incentives in Canada, and some provinces are also banning Tesla from their programs. According to Electric Autonomy, British Columbia, Nova Scotia, Prince Edward Island, and Manitoba have all made Tesla vehicles, chargers, and battery systems ineligible for government rebates.
Depending on the province, these retaliatory moves from Canada could benefit GM. GM EVs eligible for provincial incentives or future federal iZEV programs could become notably more affordable than a similar Tesla model.
Similarly to the U.S., Tesla alone accounted for roughly half of all EV sales volume in Canada in 2024. Time will tell whether these changes make a significant dent in Tesla’s bottom line or Canadian market share.
Comments
Typical L1berals. Full war path because it was pointed out they charge America way more in T@rrifs. Please o please elect Pierre Poilievre next month! These L1berals will be your doom!
You need to do a little more real research to get the facts… that is if you actually value facts. What a mo Ron.
Tesla, tried to defraud the incentive program and got caught. FAFO
SissySteve…….. Trump and Musk are punks
When his buddy wants to take your country like Hitler, you would not want to help them either.
GM EV sales may rise due to this. I wonder though how this new political climate will affect GM EVs that will soon transition to the Tesla supercharging network. Will they cancel that in Canada? Keep it?
Agree, GM needs to be pushing hard their vehicles and the advantages over the competition.
I have been a long time GM owner, almost 50 years and 21 GM vehicles.
I don’t see GM having any EV products that equal the technology of the Tesla.
Sierra EV has 40% longer range than the Cybertruck, faster charging, more ergonomic interior (rearview camera in the mirror, physical knobs, heads-up display), hands-off driver assist on highways. Other than FSD on city streets I think Tesla’s technology advantages are overblown actually.
We got really close to buying a Model 3, but went with the Bolt EUV instead. We freaking love the Bolt and could never imagine driving a Swastikar at this point. Even before Elon went hard reich, the thought of only be able to use Tesla for parts and service was a big advantage for Chevy.
They already do equal. And I also like Tesla’s. You need to see the 2025 Cadillac Escalade IQ. Look it over closely. I have.
That’s a laugh.
And GM has no EV products that equal the baggage of a Tesla. Keys are being sharpened…
Tesla jams a bunch of flashlight cells into their vehicles and hopes everything holds together. They are among the least technically advabces EVs on the market.
Geo3: Well… you clearly haven’t done any real research and are just talking out of your as s.
>>> it is all about EV, whatever the brand is and as being EV do not really care a 1 %
You cared enough to click on the article AND leave a comment. If you don’t care, why bother?
Another reason to stick it to Canada. They are not our friends. Mexico isn’t our friend either. Stop the drugs and illegals. Then we’ll talk.
Trump is the enemy of the people
Stop the drugs? Then get Musk out of the Whitehouse. He is clearly an addict.
Isn’t Tesla worth more than Canada?
First of all, I cannot understand anyone buying the most butt ugly vehicle since the Aztec. The article says the rebate fund is out of money. GM has a chance to increase their sales since both GOP’ers and Dems both are angry with Musk and Tesla. Some on here and other sites say it is the liberals that are torching Teslas, no it is not. People are angry with Musk and they are from both sides of the isle. Musk needs to get the hell out of our government, gee what kind of damage can the richest man in the world, that has more government contracts than any other company, but is also in bed with China, and has the largest auto plant in the world located in China. (which is being financed by China) . Elect a clown expect a circus.
An Aztec is an improvement over this thing, in both appearance and engineering.
Time for Tesla to reduce price of Cybertruck to $65 (2-motor) since GM sells their EV trucks at around $65K.
In another 6 days, we will know what is Tesla sales.
If things dont go well then Elon has to give up DOGE and go back to running Tesla.