Transport Canada, the country’s top regulatory body overseeing transport regulations, has cleared Tesla Inc. of any wrongdoing in Canada’s Incentives for Zero Emission Vehicles (iZEV) rebate program. This decision comes after an investigation into over 8,563 rebate claims filed by four Tesla stores in Canada in a single weekend in January 2025.
Investigation Details
The agency launched a probe after the large number of rebate claims were filed, with the rebates worth over $43.2 million, almost half of the remaining $71.8 million budget. Tesla attributed the high volume of claims to backlogged deliveries and stated that the program’s rules allowed for post-delivery submissions of rebate claims.
Concerns Raised
Questions were initially raised when it was discovered that the four stores, including an outlet in Quebec, filed over 4,000 claims in a single day, accounting for 88.7% of the total claims. However, after the investigation, Tesla was found to have complied with the program’s rules.
Future Participation in iZEV Program
Despite being cleared of fraud, Tesla will still be excluded from any future iZEV program due to U.S. tariffs and “geopolitical tensions” involving CEO Elon Musk.
Impact on Tesla Sales
This news comes as Tesla sales in Canada have been declining, with researchers suggesting that the figures have almost reached zero. Sales in Quebec have fallen by over 87%, and the company has also experienced double-digit declines in Europe, with sales in Denmark and Sweden down more than 60%.
Expert Criticism
Tesla has faced criticism from experts, including Ross Gerber, co-founder of Gerber-Kawasaki, who has spoken out against Elon Musk’s political activities and the company’s dwindling sales.
Upcoming Annual Shareholder Meeting
Recently, Tesla announced that it will hold its annual shareholder meeting in November, after pressure from major investors who have expressed concerns about Musk’s politics and rising tensions with President Donald Trump.
Conclusion
The clearance of Tesla in the iZEV rebate program investigation is a significant development, but the company still faces challenges in Canada and globally. With declining sales and criticism from experts, Tesla must navigate these issues to regain momentum in the electric vehicle market.