Investigation into Tesla's Last-Minute Canadian Rebate Requests

The Minister of Transport Canada is currently investigating Tesla following a surge of rebate applications that were submitted in the last few days of Canada's iZEV incentive program. As the program was set to conclude last month, Tesla submitted an astonishing 8,600 sales requests within just three days. Despite facing criticism in Canada over CEO Elon Musk's involvement with the controversial U.S. Trump Administration, Tesla claims to have sold more vehicles in Canada during this short period than in the entire first quarter of 2024.

According to the Toronto Star, Tesla reports it sold 8,653 units over a single weekend, with one location in Quebec City contributing over 4,000 units to that total. This last-minute push reportedly allowed Tesla to secure more than $43 million in Canadian rebates, taking up more than half of the remaining budget for the program. Although the program was slated to continue until mid-March, concerns about funding surfaced as early as the end of January, prompting the government to signal that the money was running low. Ultimately, these sudden rebate requests depleted the program's cash reserves by the end of the weekend.

The Canadian Auto Dealers Association (CADA) voiced concern about the fallout from Tesla's blitz of applications. They noted that approximately 2,300 vehicles were left without proper rebate funding after the program ran out of money. Dealers had initially offered the $5,000 rebate to customers at the time of sale, believing they would be reimbursed by the government later; however, with the program's funds exhausted, they found themselves facing a loss of about $10 million in unfulfilled promises. CADA spokesperson Huw Williams expressed frustration, stating, "These dealers in good faith gave customers the money for a program that is always refunded. They shouldn't be left making a payment on behalf of the Government of Canada. Tesla gamed the system."

The Popularity of Tesla in Canada

Despite the controversy, Tesla continues to be the leading electric vehicle brand in Canada, although its recent sales surge raises eyebrows. It was anticipated that the impending end of the incentive program would trigger a spike in electric vehicle purchases across the board, making it likely that Tesla would benefit the most. However, the reported sales figures—especially after Tesla's sales had reportedly dropped by 70 percent between December and January—seem quite dubious. While it's challenging to ascertain the truth of these claims, skepticism remains until Transport Canada concludes its investigation into Tesla's reported sales.

Transport Canada has noted that the iZEV program, which was launched in 2019, is currently only paused and has not been completely abolished. Mark Carney, the next Prime Minister, has indicated his intention to revitalize the program with additional government funding in the future.

Tesla, Investigation, iZEV