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Canada Freezes $43 Million in Tesla EV Kickbacks, Bans Future Eligibility Over Tariff Dispute

chrisdh79 | 2025-03-26 11:04 | 723 views

Comments (127)
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chrisdh79 2025-03-26 11:06

From the article: The Canadian government has frozen $43 million in electric vehicle (EV) rebate payments owed to Tesla and declared the automaker ineligible for all future iZEV (Incentives for Zero-Emission Vehicles) programs, citing a combination of trade tensions and concerns over potential misuse of the program. The decision was confirmed by Chrystia Freeland, who was recently appointed as Transport Minister. According to Freeland, the freeze was ordered before the election was called, and payments will remain suspended until every claim submitted by Tesla is reviewed individually. “No payments will be made until we are confident that the claims are valid,” said Freeland in a statement to the Tornoto Star. “I also directed my department to change the eligibility criteria for future iZEV programs to ensure that Tesla vehicles will not be eligible for incentives so long as the illegitimate and illegal U.S. tariffs are imposed against Canada.” The move comes in response to a last-minute surge in rebate claims submitted by Tesla in the final days of the iZEV program. According to government data, Tesla filed thousands of claims in just 72 hours that exhausted the remaining funds in the program nearly overnight. While many are claiming Tesla abused the program, the more likely scenario is that Tesla rushed to file claims for cars it had already sold, but not yet sought the rebate. More than 200 independently owned Canadian dealerships were left out of pocket by approximately $10 million, having already advanced rebates to customers with the expectation of government reimbursement. Freeland’s office confirmed that these dealers would still receive these rebates, regardless of the outcome of the investigation into Tesla’s claims.

galaxyquest82 2025-03-26 11:26

Sad ..

Salty_Leather42 2025-03-26 11:40

Makes sense , it’s pretty clearly fraud or at the very least abusive of the system.

thebiglebowskiisfine 2025-03-26 11:49

"kickback"?

torsojones 2025-03-26 12:12

This is only 0.043% of Tesla's revenue last year. I think they'll be okay.

[deleted] 2025-03-26 12:13

Incredibly stupid. Elon Musk has absolutely nothing to do with tariffs, yet is being singled out by the Canadian government. Pierre polievre btw would be no different. All OEMs from the US should have the same tariffs but no, we show how weak we are. Thousands of buyers now on the hook for thousands more than they anticipated. No different than the stupid Chinese EV tariffs. Are we not championing innovative clean energy companies, or are we killing them?

[deleted] 2025-03-26 12:13

I seriously doubt Tesla just submitted fraudulent claims like so many sources (not this one) seem to be suggesting, or even outright claiming. Just seems like they batch submitted a large amount of sales at once. Unless this was strictly prohibited, I don't see why this is being made to be such a big deal.

Neko-flame 2025-03-26 12:26

Because Elon stories get clicks. Aint no one care about Ford or Chevy.

lowspeed 2025-03-26 12:39

kIcKBAcK!!! lol, geez these articles.

Nakatomi2010 2025-03-26 12:43

This story has been building momentum over the last month or so. As I understand it, the [Toronto Star reported on it first](https://archive.ph/vpwmL). *We don't know the specifics of what's up*. Tesla is not a traditional dealership, in that they operate their own stores. This could be something as simple as "Tesla had a paperwork backlog and funneled everything through this one store" or it can be Tesla straight up abusing the rebate system. The reality is that no one knows what happened, just that it did, and every time another province excludes Tesla, they bring up this story as an "explanation" of "one of the reasons" why this is happening, but as of yet, we don't know the specifics behind what Tesla was doing with the rebates. It *looks* shady, but let's not forget that the internet was *ablaze* about how [Tesla "lost" $1.4 billion dollars](https://archive.ph/Au7wY), and now the publication has [written a retraction](https://archive.ph/evAlg) regarding it. *Bad news* about Tesla will always get more click and attention than good news, because that's how people feel about Tesla at the moment. If/when an explanation for this rebate thing pops up, don't expect it to be spread around as much as the current "Look! Tesla is evil!" narrative that's being pushed heavily right now. Everyone and their mother is looking for any dirt on Tesla because that's what the "people" want to see. These articles about Tesla are often the same thing over and over again, "Look! Tesla did something bad!" followed a little later on with "Wait, my bad, it only *looked* suspicious" **Tesla, if you're reading this, you *really* need to get with Elon about spooling up your PR department again. No, it shouldn't be necessary, but people need facts when weird shit is going on, and people are finding weird shit at an all time high**

p3n9uins 2025-03-26 12:45

Same. Let’s see what they determine after they check em all

Naturebrah 2025-03-26 12:47

It’s much more about the statement than the actual figures.

Fiveofthem 2025-03-26 13:11

The phrase “sleeping with the devil” is a figurative expression meaning to associate with someone or something that is likely to cause harm or trouble, or to make a deal with someone untrustworthy

yhsong1116 2025-03-26 14:29

I’m telling you now Idiotic liberal government is desperately trying to find dirt on Tesla and this will end up being waste of resources

FrostyFire 2025-03-26 14:38

lol no it isn’t. They announced the program was ending so submissions were rushed in before a deadline.

Llee00 2025-03-26 14:38

maybe it was a tax related decision where it made sense to report sales before tariffs kicked in

greatter 2025-03-26 14:45

You're right. It has politics written all over it.

[deleted] 2025-03-26 14:50

[deleted]

EnvironmentalElk6788 2025-03-26 15:06

They stole bank accounts of the truck protestors. Now they attack Testla. Appears they are not a free country.

feurie 2025-03-26 15:07

And I don’t think it was even sales though. It was registering for rebates after orders were placed.

Fanfare4Rabble 2025-03-26 15:47

Canadians hate Tesla more than they like clean air.

Fanfare4Rabble 2025-03-26 15:47

And pathetic

Waste_Thought_7754 2025-03-26 16:33

Sold my tesla today as a Canadian. When BYD is unbanned, I'll be getting one of those.

No0ther0ne 2025-03-26 16:53

The one nice thing I can say about this is that at least they are covering those dealerships for rebates they had already given out. In the end I see this hurting consumers and EV adoption in Canada more than anything else. It is very much a performative move.

bradeena 2025-03-26 17:13

Agreed comrade! They should learn to be free like the glorious Motherland!

BadRegEx 2025-03-26 17:21

This hurts Canada's EV adoption more than it hurts Tesla. No one talks about the Big Oil Lobby. Tell me the politicians behind this aren't influenced by the oil lobby. They've been lobbying so long and are so good at it that they remain entirely in the shadows.

InvestigatorOk9354 2025-03-26 17:29

Canadians like their sovereignty more than they like Tesla.

Thanksnomore 2025-03-26 17:47

That's the assumption, we don't have the answer yet

Thanksnomore 2025-03-26 17:48

There are other EV options in Canada

JerryLeeDog 2025-03-26 18:01

Yeah my thoughts exactly Canada sounds like a dictatorship recently

JerryLeeDog 2025-03-26 18:01

This hurts Canada more than Tesla lol

CharliesDonkeyKick 2025-03-26 18:09

Tariffs are only bad when America does it, am I right?

PeterMode 2025-03-26 18:11

*This post was mass deleted and anonymized with [Redact](https://redact.dev/home)* knee edge spark rich bake boast automatic cats square hungry

Salty_Leather42 2025-03-26 18:24

I guess we’ll find out . I want Tesla to succeed but I find it unlikely they’d actually sell that many cars in a couple of days  . If they’d been sitting on submissions for weeks and deliveries were already complete they should definitely get their money. If they “sold” the cars to a corporate entity at arms length in the span of a couple of days , that’s not cool.

Important-Ebb-9454 2025-03-26 18:31

cool story bro!

No0ther0ne 2025-03-26 18:33

No one is saying there aren't, but atm Tesla is the most mature EV company out there. And with most major car manufacturers switching over to use the Tesla supercharger network, that is another thing to consider. How do they separate Tesla the car company from Tesla the supercharger infrastructure? Overall I just see this immediate move as a bigger roadblock to overall EV adoption and expansion than specifically hurting Elon.

savageotter 2025-03-26 18:35

I worked in a traditional dealer and fraudulent incentive claims were extremely common. This wouldn't surprise me at all

Mysterious_Mouse_388 2025-03-26 18:51

you know what would benefit ev consumers? BYD and china. If they push us to the point where we open that door it isn't closing and Ford will never sell a car here again.

Mysterious_Mouse_388 2025-03-26 18:52

welcome to trade wars. shoot yourself in the foot and hope for collateral damage. we'll build a wall and Mexico will pay for it. Narrator: they didn't pay for it

Thanksnomore 2025-03-26 18:55

It's not hard, Tesla isn't the only one that's going to offer NACS stations moving forward and besides, nothing changes for the supercharger network. Also the changes don't stop people from buying Tesla's but instead gives an incentive towards other EV options. Other manufacturers are catching up pretty quickly and there are good alternatives. Hopefully Canada will also open the door to Chinese EVs.

No0ther0ne 2025-03-26 19:02

Perhaps, but do you think if Tesla the car company is shut out that Tesla the infrastructure company is going to be incentivized to continue building out and expanding and/or supporting existing infrastructure? There are other NACS solutions, but none of them have been as good or stable as Tesla. Also many of the other options are more expensive than Tesla's as well.

SwankyPants10 2025-03-26 19:03

As a Canadian Tesla owner for almost 6 years, you don’t need to feel bad for us. This really isn’t harming us at all, because at this point Elon has actually made it a no brainer for us to spend 10k more to get an equivalent range EV from another brand.

THATS_LEGIT_BRO 2025-03-26 19:40

All they had to say was that the first X number of each brand qualify for EV rebates. Tesla would deplete first.

Danne660 2025-03-26 19:47

That is a dumb system where the government says that brands should split up into more brands or be punished for not doing so. Better that they are just upfront with the fact that it is Tesla they have a problem with.

samcrut 2025-03-26 21:00

Hmmm... I wonder if getting all that inventory they can't sell out of Canada is gonna allow Canada to collect tariffs on allowing the cars to cross the border. That would just be chef's kiss.

Thanksnomore 2025-03-26 21:48

But Tesla isn't getting shut out though, they just don't qualify for the EV incentives. There are already a multitude of companies in Canada that offer charging services in parking lots, malls, etc...the only problem is that not as many are fast chargers. So I agree, the Tesla supercharging network doesn't have any current competition. Vancouver for example has a solid amount of non-supercharger LVL 3 chargers, but Tesla is still by far the best and most convenient option. Disclaimer, I've myself only used the superchargers.

Important-Ebb-9454 2025-03-26 22:05

Sounds like Canada didn't have a robust enough system to ensure even participation.  They could have had a manufacture cap, export cap, etc. Not really Teslas fault for following their rules.

HODL_or_D1E 2025-03-26 22:15

They already got your money

Quin1617 2025-03-26 22:35

> Bad news about Tesla will always get more click and attention than good news, because that’s how people feel about Tesla at the moment. Bad news *in general* gets more clicks and views. The media is sensationalized for a reason.

noghead 2025-03-26 22:36

Why? Elon has largely been quiet about Canada. DOGE doesn’t effect Canada. I know the answer, it’s because a lot of Canadians know more about US politics and culture wars than Canada’s own. This is why you get trolled about 51st state.

Specialist-Hurry2932 2025-03-26 23:24

You're defending a US PRESIDENT for "trolling." You're an idiot. A US PRESIDENT should not be "trolling." Actually, you fit in this sub.

overtoke 2025-03-26 23:56

someone will buy a used tesla instead of a new one

Salty_Leather42 2025-03-26 23:57

I hope it’s not the case but hard to see how some locations are selling a vehicle every 2-3 minutes or something like it.  They’re popular cars but the logistics of clearing 4000 cars out of one sales center in 72 hours is difficult to reconcile .

NerdyGuy117 2025-03-26 23:57

Just like that $1.4 billion financial issue that went away, this probably will too.

DrCalFun 2025-03-27 00:15

Do you think it really matters in politics what the truth is?

[deleted] 2025-03-27 00:46

Ok that’s right there Karma…..well done

theotherharper 2025-03-27 00:56

I'm understanding the size of the fund is finite, yes? When funds run out, no more claims are accepted yes? So At the very least, it reflects just terrible business practices to let those stack up on someone's desk, they should have been submitted at the earliest practical time. Maybe do at most weekly batches, not save them all up til the end of the program. Especially if they have already given the money to the customer.

theotherharper 2025-03-27 00:58

We see a LOT in the US because there are income and census-line limits, so if you move, get a bonus or just don't understand your income, surprise! In that case the customer just has a bad year on their Form 1040.

dead_ed 2025-03-27 02:47

> This is why you get trolled about 51st state. This is disqualifying behavior. It's always just "trolling" until it's not. Have some minimal level of ethics.

dead_ed 2025-03-27 02:48

If it quacks like a duck...

Total-Animal-3966 2025-03-27 03:02

Job well done

VideoGameJumanji 2025-03-27 03:59

It is such a big deal because all the claims apparently went through just two or three dealerships which is fucking weird in the context of how many there are in Canada. There is absolutely no justification for the volume of orders they were submitting all once, there’s a lot of details that seem fucky

Vassago81 2025-03-27 04:01

Was your car built in the US or China? How much money did you lose?

noghead 2025-03-27 04:18

How is that defending? I’m just stating a fact. Btw I’m old enough to remember Canada has always been made fun of by the US. So many tv shows (South Park being one of the most memorable) did it; it was how Americans felt about Canada…this isn’t new.

noghead 2025-03-27 04:20

It’s trolling. Canada is not going to be a state. “It’s not even a real country anyways” was a popular lyric from south park. It’s been part of American culture to shit on Canada for a very long time.

GreenCreep376 2025-03-27 04:39

You can't joke about invading another country, especially if your the acting POTUS! Also the “It’s not even a real country anyways” was a joke making fun of nationalists, how. on. earth. do you unironically use that line.

shaneucf 2025-03-27 04:58

Ev adoption is already done if they just allo Chinese EVs to be sold in the NA

Significant-Meal2211 2025-03-27 09:22

Just open up to Chinese EV and reduce Tarrifs from 100% to 10%

Capital_Loss_4972 2025-03-27 11:05

Great job supporting innovation Canada.

Nakatomi2010 2025-03-27 11:15

Well, this is an automotive subreddit, not a political one, so I'd like to think that the people coming here are more concerned abut the automotive angle, not the political one. There's plenty of other subreddits out there that allow for discussion of the political end of things, and folks are welcome to go there.

Dr_Pippin 2025-03-27 13:39

Yeah, exactly, don't let the truth get in the way of a good headline. "Kickbacks"? They're rebates. Sheesh. Anything to make Tesla look bad.

Limp_Divide7583 2025-03-27 13:57

Musk is doing his best to run Tesla into the ground

mchinsky 2025-03-27 14:43

Canadians can now manually drive inferior EV's or go back to guzzling ICE cars...

42nu 2025-03-27 15:18

I agree with a bit of nuance: It was a batch filing and not fishy at all. With this caveat: they rushed it forward specifically because they knew what was coming and wanted to pocket the money before it was denied (like it is now) due to the unnecessary trade war from an administration that the head of Tesla ties himself to. In *that* sense it was *sleezy*, but certainly not illegal or shadier than that context

42nu 2025-03-27 15:21

To be fair, Elon has for decades been an attention whore with "all news is good news because it gets the brand into people's heads like free advertising" as his modus operandi. It's an intentional strategy for him and he knows it's a double edged sword. So que sera sera.

42nu 2025-03-27 15:25

Maybe when he arbitrarily fired like 25% of Teslas entire workforce last year he should have considered that could LOSE TESLA MONEY on the backend. Just like arbitrarily and illegally firing govt workers has now mandated back pay for the time the fired workers sat at home... And many are on rehired into administrative leave, getting paid to do nothing because they fired entire depts so haphazardly that they cannot even give them jobs back. His complete lack of foresight and a modicum of compassion or empathy is finally coming home to roost.

TheRauk 2025-03-27 16:07

This is all very much remindful of the tiddly-winking leapfroggers from the golden summer of 1914. We will see how bullish folks are in 1918.

Ancient_Persimmon 2025-03-27 16:12

>but instead gives an incentive towards other EV options. There's no incentives anymore, that was the last of it federally.

maxhac03 2025-03-27 20:39

Elon hurt Tesla more than anything.

JerryLeeDog 2025-03-27 20:52

Can confirm. I bought Tesla stock in 2017 and he's totally TANKED the value of the company sine then. I'm financially devastated by Elon's mismanagement of his trillion dollar business

sapper4lyfe 2025-03-27 21:14

Yeah I'm glad we as Canadians are cutting Tesla off.

theotherharper 2025-03-27 22:16

Yeah, thinking ahead and being HR-smart isn't really the habit of people in his ... *social circle*.

Salty_Leather42 2025-03-27 22:18

🦆

FreshCalzone1 2025-03-27 23:47

I sense a lawsuit coming.

GusJusReading 2025-03-28 01:03

I'm glad you got rid of it.

Impressive_Grape193 2025-03-28 01:21

Yeah that would certainly be a game changer. But with current relations between Canada and China, it would look incredibly weak for Canada to do so.

SufficientStress4929 2025-03-28 01:40

Apparently it's not the first time they submitted batches...5600 rebates submitted over a 3 day stretch in august, and over 1000 a few other times. But this many seems sus to me just because sales were down down down. Idk though it could be legit. As far as I'm concerned though, tesla shouldn't have been eligible for any of our govt money at any time.

[deleted] 2025-03-28 02:46

I wouldn't consider that sleazy if that's how it played out. Not sure why Tesla should be denied their rightfully owed claims just because there is a current trade dispute between the countries.

tajonmustard 2025-03-28 05:16

There are plenty of other ev manufacturers that aren't led by a psychopath

highdesert03 2025-03-28 06:05

Well done Canada…very well done.

infomer 2025-03-28 06:46

They are so stupid. They are still trying to be fair by only revoking rebates on future sales!

Enganeer09 2025-03-28 15:39

Tesla hasn't inovated anything since their superchargers and battery tech. How's self driving going??

Enganeer09 2025-03-28 15:51

Goebbels had nothing to do with Hitler and his holocaust! All he did was promote him every chance he had, by controlling the media and raising funds!

mercosyr 2025-03-28 17:25

You do know what the term "psychopath" means?

PlumpHughJazz 2025-03-28 20:48

ICE wearing masks and abducting university students doesn't sound like a free country.

[deleted] 2025-03-29 01:14

[deleted]

whalechasin 2025-03-29 01:29

so tell them to wait another couple years. there is always risk in purchasing shares; if they didn’t realise that, that’s their fault

Capital_Loss_4972 2025-03-29 02:01

They don’t.

Capital_Loss_4972 2025-03-29 02:01

Yeah and they suck

Capital_Loss_4972 2025-03-29 02:04

Get out of here. They’re the first auto manufacturer to successfully implement a 48v electrical system across an entire car (apart from the drivetrain), among many other recent developments. Tesla is still innovating. There is no question.

FineSupplements 2025-03-29 02:27

Nobody in the market for a new car, settles on a used one, or vice versa.

FineSupplements 2025-03-29 02:27

Canada is only hurting themself

BoysenberryDouble664 2025-03-29 02:39

Wow, freezing EV kickbacks is absurd.

VideoGameJumanji 2025-03-29 21:40

That’s a whole lot of nothing, they did something clearly shady and it’s being investigated, has nothing to do with politics. If all the rebates were legitimate then they’ll get their money, simple. Using politics as a scapegoat when they do something wrong is just lazy

LeMAD 2025-03-30 14:32

Tesla basically stopped selling cars in Canada. They raised their prices so much that it doesn't make any sense to buy a Tesla instead of a Hyundai. Taxes and EV rebates included, the Model 3 is now $26k more than what I paid for mine 5 months ago.

Genericusername875 2025-03-30 17:57

Going the way of Blackberry.

zinknife 2025-03-30 22:44

Good on you, seriously.

Commercial_Macaron85 2025-03-31 06:28

Canada is doing what they do best...having a sissy fit

YeetYoot-69 2025-03-31 06:47

Fraudulent incentive claims at a traditional dealer are much easier, because you technically "sell" the car to the dealer from the manufacturer. Tesla cannot do this, because the dealers are Tesla-owned, not separate entities.

Practical_Meaning870 2025-03-31 15:58

It's too bad Elon can not just fire the Canadian government officials investigating him for fraud like he did in the US...

Common-Journalist-20 2025-04-01 05:44

I’m Chinese and I always thought that Canada was part of the US until now.

OneDollarSatoshi 2025-04-01 12:48

And proof that none of this was ever about the environment

Boring-Scar1580 2025-04-01 19:34

Doesn't this Hurt Canadian consumers more than the US or Tesla?

tryatriassic 2025-04-01 23:55

The kickbacks go to the dealership. Not to consumers.

Boring-Scar1580 2025-04-02 00:58

I guess I do not understand how EV incentive programs work in Canada . Only the dealers receive rebates / kickback from the government , not the car buyers ? that seems odd.

Opti_span 2025-04-02 09:07

Elbows up Canada! Keep the good work up !

Opti_span 2025-04-02 09:07

They are far more high-quality compared to a Tesla, we get them in Australia and honestly if they sold them in the US/Canada, they would absolutely crush Tesla.

scoops22 2025-04-02 14:00

Why? They're just gonna investigate cause the submissions were weird and other auto dealers are concerned. If it's all legit they'll get their money and everybody will move on. Can't hurt to just investigate and verify.

[deleted] 2025-04-02 16:22

[removed]

[deleted] 2025-04-03 00:27

[deleted]

markazz530 2025-04-03 00:36

none of what?

Heavymando 2025-04-06 03:23

not as absurd as selling 4k teslas from one dealership in one day

SadCicada9494 2025-04-07 15:46

And Canada put 100% tarrifs on them (hi BYD!)

Substantial_Mail_781 2025-04-08 18:00

God forbid we don’t give out free money to the company funding the guy who’s threatening invasion and infringing on Canadian sovereignty. Holy entitled

The_Kala_Factor 2025-04-11 17:29

Nobody is going to get this extremely obvious sarcasm, and it is very sad.

shaneucf 2025-04-30 11:40

Canada , not happy US puts high tariff. Also Canada, puts 100% tariff on Chinese EV. Ye...

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