Ottawa to Investigate Tesla’s EV Incentive Claims, Ban It From Any Future Rebates
Canada’s new Transport Minister Chrystia Freeland has announced that all zero-emission vehicle incentive payouts to Tesla have been suspended while an investigation is underway.
As first reported by the Toronto Star, the EV maker has been suspected of gaming the system after it filed over 8,600 rebate claims worth $43.2 million during a three-day span that included a weekend in mid-January, which led to the abrupt halt of Canada’s iZEV program and left many customers and dealers scrambling.
- Also: Tesla Buyers in Nova Scotia, Manitoba Now Denied EV Incentives
- Also: Over 80 Tesla Vehicles Damaged at Hamilton Store
This all started when Transport Canada warned that the program would run out of cash prior to its expected end date of March 31, 2025. Freeland said she wants to make sure each and every claim is valid before granting payments.
Under the iZEV program, eligible vehicles were entitled to a rebate of up to $5,000.
According to data from Transport Canada, Tesla accounted for a whopping 88.7 percent of total iZEV rebate claims made from January 10-12. A single Tesla store in Quebec City was responsible for 2,558 claims on January 11 alone.
Ottawa isn’t just investigating Tesla’s sales tactics, mind you. Freeland said that, if and when the iZEV program returns, Tesla vehicles will be disqualified “so long as the illegitimate and illegal U.S. tariffs are imposed against Canada.”
The federal government’s move would be yet another form of retaliation against Tesla in the wake of CEO Elon Musk’s recent political actions and his close ties with U.S. president Donald Trump, who has waged economic war on Canada.
Nova Scotia, Manitoba and Prince Edward Island have all done the same with their provincial EV incentive programs, while British Columbia has excluded all Tesla products including home chargers from its rebate program.