Tesla secured half of Canada’s remaining EV rebates in just three days

Tesla’s TSLA ( ▲ 7.13% ) last-minute rush for EV rebates in Canada is now under scrutiny, with Transport Canada reviewing how the automaker secured so much of the program’s remaining funds.

The details: According to reports, Tesla made a huge number of rebate requests on the last days of Canada’s EV incentive program, suggesting that the electric carmaker had a weekend sales boom that rivals anything in the business to date. 

• Four Tesla locations filed a total of 8,653 rebates for EVs in the last three days of the rebate program, which abruptly paused on January 12. 

• One Tesla location in Quebec City claimed 2,500 rebates for electric vehicles in a single day and 4,000 over the weekend.  

• In total, the four Tesla locations filed for $43.1 million in rebates, which is more than half of the $71.8 million in Canada’s remaining rebate funds for EVs.

Canada made an announcement in early January that it would be ending its Zero Emissions Vehicles program (iZEV) due to depleted funds. The program was initially scheduled to end on March 31.  

Zooming in: Amid Tesla’s rebate claims, Canadian officials have been touting the EV incentive as a huge success, with efforts to accelerate the country’s transition to zero-emission vehicles.

• Over 546,000 vehicles have been incentivized through the iZEV program since it began, helping Canada reach a new ZEV market share of 11.7% in 2023, up from 3.1% in 2019.

• New ZEV market share in Canada reached 14.2% in the first three quarters of 2024, including a new record high of 16.5% in the third quarter of 2024. 

What they’re saying: “Since 2015, our Government has been committed to building a greener economy and combatting climate change. We will continue to engage with industry, environmental groups, and across jurisdictions to foster collaboration in decarbonizing the country's transportation sector and becoming a global leader in zero-emission vehicles,” said The Honorable Anita Anand, Minister of Transport and Internal Trade, Transport Canada.

Between the lines: Some dealers say they are getting left behind. The Canadian Automobile Dealers Association (CADA) reports that its members are now stuck covering 2,295 unreimbursed rebates worth $10 million—a direct result of Tesla’s last-minute filings swallowing up the program’s remaining funds.

CADA has been pressing Ottawa for weeks, arguing that Tesla “gamed the system.” Now, Transport Canada is formally reviewing how the final round of rebates was distributed.

Zooming out: News of Tesla’s rebate claims comes as the electric carmaker struggles to maintain its market positioning in Canada amid its slumping sales stemming from the loss of rebates on the federal and provincial level and significant price hikes across its lineup.    

• Tesla sales in Canada fell by 70% from December 2024 to January 2025, mirroring a drop of 79% for the broader electric vehicle (EV) and plug-in hybrid (PHEV) sales.

• On Feb. 1, Tesla implemented a price hike across its entire vehicle lineup in Canada, with some trims seeing a price surge of up to $9,000.  

Why it matters: Tesla’s troubles in Canada are reflective of the challenges the electric car company faces in the U.S. and globally. The overall sales decline of EVs in Canada could also be forewarning of the potential sales fallout in the U.S. if the Trump Administration decides to pull the plug on federal EV tax incentives.   

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