Canada freezes Tesla rebate payments, excludes company from future programs

A Tesla model Y and other Telsla vehicles sit at a dealership, Wednesday, March 19, 2025, in Kennesaw, Ga. THE CANADIAN PRESS/AP, Mike Stewart

VANCOUVER — Payments for Teslas under Canada’s electric vehicle rebate program have been frozen pending a government investigation into whether they’re valid.

Transport Minister Chrystia Freeland said in a statement Tuesday that eligibility criteria for future incentive programs for zero-emission vehicles will be changed to ensure Tesla will not be eligible “so long as the illegitimate and illegal U.S. tariffs are imposed against Canada.”

Freeland said she made the order when she became minister earlier this month, but it is being publicized in the midst of a federal election where Canada’s relationship with the United States has become a central issue.

Tesla is run by U.S. presidential adviser Elon Musk.

Freeland said no payments will be made until the government is confident that the claims are valid.

The Toronto Star reported that Tesla filed thousands of rebate claims in the final days of the program, the equivalent of selling two cars a minute, 24 hours a day.

Brian Masse, the NDP candidate for Windsor West and critic for auto strategy, said in an interview Tuesday that Tesla’s “aggressive run” to get the last of the available money under the program was done at the expense of Canadian-built vehicles and Canadian consumers who did not get the incentives.

“We now let Tesla have a run on the last of the incentives when our auto industry and our Windsor plant is under siege with (U.S. President Donald Trump),” he said.

Masse said making sure that Tesla is not part of future programs is “the least of what we should expect.”

He said future programs should only be for domestic-made vehicles unless individual agreements are signed with foreign countries that are willing to reciprocate with similar incentives.

Article by Ashley Joannou.

With files from Nick Murray in Ottawa.