Tesla Accused of Shady Tactics In Canada, Faces Potential Investigation

Elon Musk’s Tesla is once again at the center of controversy, this time in Canada, where the automaker is facing accusations of exploiting a government rebate program. 

Reports indicate that Tesla dealerships claimed tens of millions in incentives in just three days before the program was abruptly shut down.

A Surge in Sales Raises Red Flags

According to the Toronto Star, Tesla’s last-minute rebate claims have left independent car dealers in Canada short by an estimated $6.91 million. The federal Incentives for Zero-Emission Vehicles (iZEV) Program, launched in 2019, was designed to provide rebates of up to $5,000 per EV purchase. 

However, just as the program was set to run out of funds, four Tesla stores allegedly claimed a staggering 8,653 EV sales over a single weekend, requesting nearly $30 million in incentives.

A single Tesla location in Quebec City reported selling over 4,000 EVs in two days, numbers that industry experts find highly questionable.

Dealerships Cry Foul, Demand Government Action

The Canadian Automobile Dealers Association (CADA) is calling for an investigation into Tesla’s actions, arguing that independent dealers were left holding the bag. CADA spokesperson Huw Williams stated:

Somehow, Tesla gamed the system. What we can’t figure out is how this could have happened without setting off alarm bells.

Many Tesla locations reportedly don’t have the physical capacity to hold the number of vehicles they claim to have sold. If each customer took just 20 minutes to complete a transaction, Tesla staff would have needed to work inhumanly long hours to process the alleged sales volume.

Political Fallout and Government Response

Canadian Transport Minister Anita Anand has called Tesla’s rebate claims “unacceptable” and has requested a full report from the agency responsible for administering the program.

Meanwhile, the controversy surrounding Tesla in Canada is escalating, fueled by the company’s association with U.S. President Donald Trump. Since Musk’s vocal support for Trump’s policies, Tesla’s reputation in Canada has suffered, with sales reportedly plummeting by 70% between December 2024 and January 2025.

This backlash isn’t limited to Canada—protests against Tesla and Musk have intensified worldwide, with critics targeting his political stance and decisions surrounding DOGE.

What’s Next for Tesla?

While Tesla has not yet responded to media inquiries, Transport Canada has confirmed that an investigation is underway. If the claims are found to be fraudulent, the company could face severe penalties.
This adds to Tesla’s ongoing struggles, as its stock recently suffered its worst drop in five years, raising concerns about investor confidence in Musk’s leadership.

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