A suspicious surge in sales
Tesla is under fire in Canada after claiming C$43.1 million (about $30 million USD) in electric vehicle rebates for 8,653 cars sold across just three days. That pace raised eyebrows, especially since the sales occurred right before Canada’s federal EV incentive program ended. The figure amounts to roughly 30 Teslas sold per hour per store, 24/7, across four locations. Naturally, regulators were skeptical.
Canada’s government responded by freezing the rebate payments and launching an investigation into the legitimacy of the sales. Critics say it looks like Tesla gamed the system to scoop up the final dollars before the program expired.
Tesla says it played by the rules
Tesla strongly denies any wrongdoing. In a letter to Canadian officials, the company’s director of sales and service for Canada, Fereshteh Zeineddin, explained that the rebates in question were for vehicles that had already been sold, Electrek reported. Tesla employees were simply processing backlogged paperwork before the program expired, Zeineddin wrote in the letter.
Tesla maintains that this was permitted under the program’s rules and that none of the money would go directly to Tesla’s bottom line. Under Canada’s EV rebate program, dealers apply for the rebates on behalf of customers, and then the government reimburses the dealer. According to Tesla, this was a case of catching up on paperwork, not an attempt to cheat the system.
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Frozen funds, public backlash
Transport Minister Chrystia Freeland ordered a pause on rebate payments, saying officials needed time “to fully examine each claim individually and determine whether all are eligible and valid,” she told the Toronto Star. Tesla claims the delay has sparked a public backlash against its employees, leading to verbal abuse and harassment.
Of course, the back-and-forth over rebates is far from the only reason Canadians have to be angry with Tesla. The company’s CEO, Elon Musk, has tainted Tesla’s image for many through his political involvement. Freeland, a candidate for the leadership of Canada’s Liberal Party, has even proposed a 100% tariff on U.S.-made Teslas in response to President Trump’s latest trade policies.
The company is now threatening legal action if the funds are not released soon, arguing that the freeze is unfair and damaging. Whether or not Tesla ultimately sues, the standoff has already added tension to the automaker’s relationship with Canadian regulators.
Final thoughts
This isn’t just a financial spat. Tesla’s Canadian sales reportedly dropped roughly 70% from December 2024 to January 2025, the National Post reported — adding more intrigue to the timing of the last-minute surge in deliveries. Some observers speculate that CEO Elon Musk’s increasingly political rhetoric — such as calling Canada “not a real country” on X — may be souring the brand’s public image north of the border.
Whether this saga ends in court or just a stern audit, one thing is clear: Tesla’s Canadian rebate windfall won’t be paid out without scrutiny. And for a company already under the microscope, the timing couldn’t be worse.
