Canada has suspended all rebate payments for Tesla and prohibited the electric vehicle (EV) maker from participating in future rebate programs until the tariffs imposed on Canada by U.S. President Donald Trump are permanently lifted.
The criteria for eligibility in future incentive programs for zero-emission vehicles will be revised to exclude Elon Musk’s Tesla as long as “illegitimate and illegal U.S. tariffs” on Canada remain in effect, Transport Minister Chrystia Freeland said in a media statement.
Freeland said she issued the order upon assuming her role as transport minister earlier this month, but it is being publicized during the federal election in which the relationship between Canada and the United States has become a key topic.
Freeland’s statement comes after the Toronto Star reported Tesla submitted thousands of rebate claims in January amid a surge in sales during the last days of the program, amounting to the sale of two cars per minute for each hour of the day.
The report said a total of 8,653 rebate claims were made by Tesla during a 72-hour period, with more than 4,000 of those claims coming from a single Tesla dealership in Quebec City which said it sold the vehicles over a single weekend.
Freeland said no payments will be made to Tesla under the Incentives for Zero-Emission Vehicles (iZEV) program until the government is confident the claims have merit.
Tesla did not respond to a request for comment by publication time.
Freeland has previously proposed a 100 percent tariff on Tesla vehicles, citing Musk’s involvement in the administration of U.S. President Donald Trump as a reason.
Tesla is just one of the companies owned by Musk, a billionaire who is a friend and personal adviser to Trump. Musk has been at the forefront of the White House initiative aimed at reducing federal expenditure and debt in his role as the unpaid head of the Department of Government Efficiency.
Protests have erupted against Musk as a result of Trump’s tariffs on Canada, with Tesla dealerships throughout the country experiencing demonstrations against the electric vehicle company.
“Tesla Takedown” protests were held at several locations across Canada, including in Ottawa and Vancouver. Protesters in Surrey B.C. brandished signs outside a Tesla dealership that said, “Elon be-gone” and “democracy dies in apathy.”
Numerous attacks have occurred at Tesla dealerships nationwide, with some drivers also being targeted and nearly 90 vehicles being damaged. Police said the most common occurrences are fires, graffiti, vandalism, and slashed tires.
