Tesla may have taken too big of a slice
Much like the U.S., Canada too has an EV rebate program to encourage more car buyers to go fully electric. The program was so popular that it was set to shut down early, and many car dealerships are claiming Tesla pulled a possibly illegal stunt to take most of the program’s remaining funds, which shut the program down even earlier.
If true, it means Tesla created an unfair advantage to take over half of the CAD 71 million left in the program, leaving many car dealerships unable to get rebates they otherwise would have.
How did Tesla game the system?
In the waning days of the rebate program, it seems Tesla over-reported the number of cars it sold. Across four different Tesla dealerships in Canada, the company claimed it sold over 8,600 vehicles in three days. Since each EV sold earned a $5,000 rebate while the program was active, this resulted in over CAD 43.1 million headed Tesla’s way.
Mathematically, this means Tesla would have been selling 120 cars per hour—yes, two Teslas sold every minute—across all four dealerships, including the hours those Tesla dealerships were closed. That’s two Teslas sold every minute, 24 hours a day, for three straight days.
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How Canada’s rebate program works
In Canada, rebates on EVs are dictated by the government and provided by dealerships. The discount is provided at the point of sale, and the Canadian government reimburses car dealerships afterward. Rebate applications must be filled out before the car is delivered.
EVs sold well in Canada this year, and the program was set to be shut down early due to higher-than-normal rebate applications. Car dealers were selling EVs with the understanding that the program would come to a close early, but they were also under the belief that other dealerships were acting in good faith and selling cars normally—not two vehicles per minute, 24 hours a day.
Tesla
Why car dealerships are upset
“These dealers in good faith gave customers the money for a program that is always refunded,” said Canada Automobile Dealers Association spokesperson Huw Williams. “They shouldn’t be left making a payment on behalf of the Government of Canada.”
“Tesla had a run on the bank. Somehow, Tesla gamed the system.”
Essentially, car dealerships knew funds wouldn’t last as long as they’d expected, and with Tesla requesting so many rebates in such a short time, other dealerships could not successfully apply for rebates. It’s believed car dealerships across Canada are out CAD 10 million or more.
Did Tesla cheat?
The National Post claims Tesla sales plummeted 70 percent from December 2024 to January 2025. That, coupled with the suspicious timing of Tesla’s rebate requests – again, just before the program was set to expire – is curious.
If Tesla is being honest, its sales hockey-sticked (pun intended, Canada) at precisely the right time. This sudden and incredible spike in sales also contradicts several reports that Tesla sales were down in Canada during this timeframe.
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Final thoughts
Correlation isn’t always causation, but this situation is suspect. It’s not clear if Tesla sold the vehicles to actual people in Canada, supplied a fleet to skirt rebate laws, “sold” its cars to U.S. dealerships just to get a rebate, or something else. We expect Canadian government agents to follow up on all those sales before issuing a CAD 43.1 million check to Tesla.
