The nation will examine each electric vehicle discount intended for Tesla and will not allow it in future programs as long as the prices remain in place
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- Canada puts a magnifying glass on the EV discounts heading for Tesla after a strange sales bump.
- Until he checks each sale associated with the discounts, she will not send money to Tesla.
- The Elon Musk brand is also prohibited from future grant programs while American prices exist against him.
Earlier this month, Tesla triggered the indignation among Canadian car dealerships after sold 8,653 amazing cars in just three days in four stores, which is equivalent to around two cars per minute for three consecutive days, including the hours when the stores were closed. The company then deposited $ 43.1 million Canadian dollars (US $ 30 million) in discounts.
Everything went just before Canada runs out of money in its EV delivery fund. The combination of factors led those responsible to wonder if Tesla played the system in one way or another. Now the Canadian government freezes the payments to the manufacturer of electric vehicles led by the American presidential advisor Elon Musk, while he sorts everything.
Plus: Tesla accused of playing the Canada EV discount program after 4 stores sold 2 cars per minute annihilating $ 43 million in grants
Everyone suspected that, while the funds of the EV discount program decreased, sales would increase a little. It would be great for Tesla in Canada, especially since he had trouble moving cars at the start of this year. But sell 8,653 cars in just three days? It’s not just a boost, it’s a bit of a red flag. Something felt turned off.
Gel and pricing torsion
On Tuesday, Canada Minister of Transports Chrystia Freeland appealed to freeze $ 43 million Canadian dollars (equal to 30 million dollars at current exchange rates) for payments. “As soon as I became Minister of Transport, I asked the ministry to stop all payments for Tesla vehicles to fully examine each complaint individually and determine whether all are eligible and valid,” Freeland said in a press release Toronto star. “No payment will be made until we are convinced that complaints are valid.”
But Freeland did not stop there.
“I also ordered my department to modify the eligibility criteria of future IZEV programs to ensure that Tesla vehicles will not be eligible for incentives as long as illegitimate and illegal American prices are imposed against Canada,” she added.
Freeland has also made changes to the eligibility criteria for future discount programs, potentially make Tesla vehicles inadmissible to subsidies until the problems concerning American prices are resolved.
By connecting the question to the American prices, the Canadian government is aimed at a situation which is far beyond Tesla’s control, because tariff decisions are taken at the national level. While the besieged CEO can have a close relationship with the American president, he does not have the power to end the prices by himself. Currently, Trump is planning additional rates for April 2. However, he is already in return and has repeatedly changed on his plans. Maybe he will reconsider his strategy if Musk begins to feel the pressure.
A bite for local dealerships
Back in Canada, Freeland also mentioned that the government would reimburse more than 200 independent automobile dealers who were excluded at around $ 10 million in turnover after making customers discounts without being able to file a reimbursement.
More: while Canada is fighting against Trump’s automotive prices, Mexico chooses diplomacy rather than confrontation
Huw Williams, spokesperson for the Canadian Automobile Dealers Association (CADA), praised the news.
“The CADA was shocked by the revelations that Tesla was somehow authorized to … take $ 43 million in discounts while local dealers were left by holding the bag on advanced funds to customers on behalf of the federal government,” he told Toronto Star. “Although the news that Tesla payments are waiting for frozen-waiting are positive news, this should have happened months ago,” he added.
It should be mentioned that Elon Musk, who has a Canadian passport and triggered the controversy by publishing (and deleting later) on X that “Canada is not a real country,” considerably benefited from Canadian EV discounts. Since 2019, Tesla has claimed $ 713 million in discounts, making it the largest beneficiary of these incentives from afar.
