Tesla Under Fire in Canada Over Surge in EV Sales Before Rebate Deadline

Tesla is facing scrutiny in Canada following a significant spike in electric vehicle (EV) sales filings just before the expiration of a $5,000 incentive program.

In March, the company reported 8,653 EV sales within a mere 72 hours, raising concerns of potential manipulation among auto dealers and prompting the Canadian government to freeze $43 million in rebates while an investigation is underway.

Critics allege that Tesla may have “gamed the system,” leaving traditional dealerships disadvantaged during a time when the incentive fund was quickly running out.

Critics Accuse Tesla of Manipulating EV Sales to Seize $5,000 Incentives

The situation escalated after some Tesla dealerships reported claims that appeared implausible for their capacities. One location in Quebec City allegedly filed for 4,000 rebates over a weekend— a number that many deem physically impossible given its size.

Canadian Auto Dealers Association representatives have voiced frustration, accusing Tesla of clearing out the available incentives and leaving $10 million owed to traditional dealerships.

In response to the allegations, Tesla characterized the filings as standard practice, citing they were for backlogged sales not previously reported. The company’s director of sales and service in Canada, Fereshteh Zeineddin, emphasized that the claims were legitimate under the program’s rules.

He expressed disappointment that Tesla learned about the rebate investigation through media rather than official channels, suggesting possible legal action if payments aren’t reinstated.

The controversy surrounding Tesla in Canada may be compounded by public perception of its CEO, Elon Musk, whose associations with polarizing political figures have drawn criticism.

Transport Minister Chrystia Freeland hinted at a lack of trust in Tesla’s claims and indicated that future incentives might exclude the company, particularly as long as illegal tariffs are imposed against Canada.

This unfolding story not only underscores the competitive landscape of the electric vehicle market but also highlights the ongoing tensions between Tesla and traditional dealerships, exacerbated by the turbulent political environment affecting the automotive industry in both the U.S. and Canada.