Canadian government is investigating $43.1 million CAD ($30 million USD) in EV subsidies requested by Tesla within 72 hours, leading to Tesla being excluded from iZEV incentives until U.S. tariffs are resolved.
Tesla's request for subsidies indicated selling 8,653 EVs in 72 hours in Canada, raising suspicion of irregularities in claims and triggering freeze on payments.
Further scrutiny by Canadian officials halted payments to Tesla until claim validity is confirmed, affecting over 200 dealerships that may lay off employees due to frozen rebates.
Tesla's past involvement in manipulating incentive programs in Canada involved offering compliance cars to qualify for subsidies, resulting in taxpayer-funded support for the automaker.
Tesla has been a major beneficiary, receiving $713 million in Canadian EV rebates since 2019, causing discontent over reliance on government funds and protests at Tesla dealerships.
Political tensions between Canada and the U.S. have impacted Tesla's eligibility for future incentive programs in Canada, as Tesla's CEO's comments and actions have strained relations.
Canadian officials have changed eligibility criteria for future iZEV programs to exclude Tesla vehicles as long as U.S. tariffs remain, signaling a firm stance against Tesla's actions.
The situation highlights the consequences of bending rules, tarnishing Tesla's reputation and facing backlash in Canada, where trust in the company has eroded.
The Canadian government's response serves as a warning to Tesla about the repercussions of exploiting incentive programs and disregarding regulations.
Tesla's dealings in Canada have drawn attention to its controversial practices and strained relationships, portraying a narrative resembling a dramatic storyline rather than a business reality.