Tesla falls out of favour with Canada’s rebate programs
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Passenger EVs
Mar 24, 2025
Emma Jarratt

British Columbia, Nova Scotia, PEI and Manitoba are all excluding Tesla vehicles from provincial EV rebate programs

Provinces across Canada are systematically removing Tesla from their zero-emission vehicle rebate programs. Photo: Tesla

British Columbia, Nova Scotia, PEI and Manitoba are all excluding Tesla vehicles from provincial EV rebate programs

Tesla electric vehicles, once the symbol of the future of clean transportation, are being blacklisted by zero-emission vehicle rebate programs across Canada.

It is yet another signal from provinces to the Trump administration (and, specifically, Tesla founder Elon Musk, a “special government employee”) that their recent declaration of a tariff war, and their ongoing hostile rhetoric, will not go unanswered.

British Columbia was the first province to make Tesla chargers and battery systems ineligible for government rebates. (Tesla vehicles were already ineligible for B.C.’s rebates because they exceed the price cap.)

“I think if tens of thousands of taxpayers’ money was going to Elon Musk, they would want to throw up, so we removed them,” said Premier David Eby earlier this month.

Musk’s pithy one-word response to Eby via his social media platform, X.com: “Crazy.”

Domino effect

Clearly, other provinces have been inspired by B.C.’s “Canada First” measure and are following suit.

Shortly after Nova Scotia’s announcement Prince Edward Island struck Teslas from its list of rebate-eligible vehicles.

Then the federal government announced it was freezing disbursement of $43 million in rebates claimed by Tesla in the final weekend before the iZEV program was drained until it conducts a line-by-line review to make sure the claims are legitimate. The government also said Tesla vehicles would be banned from claiming future federal rebates while tariffs between the U.S. and Canada were in place.

And, last week, Manitoba announced it was booting Tesla cars from its $4,000-per-EV rebate program along with any other made-in-China electric vehicle.

“Donald Trump is creating a historic threat to our economy,” said Finance Minister Adrien Sala.

“It’s part of our government’s commitment to be elbows up,” continued Sala, referencing a movement started by Canadian actor, Mike Myers, during an appearance on Saturday Night Live this month.

Then, today, Nova Scotia legislature voted unanimously to pull Tesla’s eligibility for the provinces $3,000 battery-electric vehicle rebates as well as rebates for chargers and inverters.

“There are other options for us here in Canada for electric vehicles,” says NDP member, Susan Leblanc, who called for the amendment.

Teslas currently are still eligible for rebates in Newfoundland & Labrador and New Brunswick.

Falling Tesla markets

While the purchase of a new Tesla is becoming more expensive, the Tesla resale market seems to be collapsing.

Tesla owners across Canada have been off-loading their vehicles in recent months, apparently in reaction to Musk’s controversial involvement in changing U.S. policies.

Autotrader.ca recently reported a 12.5 per cent increase in listings of used Tesla compared to March 2024, while the price of a used Tesla dropped 21.9 per cent over the same period.

Meanwhile, Tesla’s stock is also on a roller coaster; in March 2025 alone, it has dropped from an all-time high of US$436 to US$248.

Editor’s Note: This story was updated to reflect Prince Edward Island’s decision to ban Tesla from its provincial rebate program along with the federal government’s review of $43 million rebates applied for by Tesla, both of which announcements were made after publication.

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