British Columbia, Canada’s third-largest province by population, has revoked government subsidies for Tesla Inc. chargers, expanding its efforts to limit U.S. imports amid ongoing trade tensions with President Donald Trump. As of March 12, Tesla chargers, batteries, and inverters are no longer eligible for rebates, according to a notice posted by the province’s power utility, BC Hydro.
Tesla’s stock has plummeted by approximately 40% in 2025, with European sales also in decline. In response to U.S. tariffs, Canada is implementing countermeasures, including tariffs and non-tariff restrictions like this, following Trump’s remarks about using “economic force” to turn Canada into the U.S.’s 51st state.
This follows an unusual spike in Tesla sales in British Columbia during January, prompting Canadian officials to launch an investigation into potential foul play. The surge coincided with a suspension of the federal EV rebate program.
Over just three days, the Elon Musk-led automaker recorded more than 8,600 sales across four locations in Canada, leading to $43 million (nearly ₹375 crore) in government rebates. Notably, a single Toronto location reported over 1,200 sales on January 11 alone, resulting in $4 million in rebates.
CADA, Car Dealers voice frustration
The Canadian Automobile Dealers Association (CADA) and other industry stakeholders claim that Elon Musk’s Tesla strategically registered a large batch of vehicles just before the Canadian government discontinued rebates for higher-priced EVs. Reports suggest that Tesla secured approximately $90 million in subsidies before the government halted the iZEV (Incentives for Zero-Emission Vehicles) program for premium electric cars.
Launched in 2019 by Transport Canada, the iZEV program aimed to boost EV adoption by offering up to $3,500 in rebates at the point of sale for eligible electric and plug-in hybrid vehicles. While designed to benefit a broad range of consumers and manufacturers, Tesla reportedly capitalized on the final days of the program by registering a massive volume of vehicles.
Now, more than 200 Canadian car dealers are voicing frustration, arguing that Tesla exploited the system, leaving little to no rebate funds for other automakers and their customers. The iZEV program, which has supported over 500,000 electric vehicle purchases since its launch, was paused on January 13 — just 72 hours after the government hinted at its possible suspension.