Four Tesla stores in Canada recorded an average of 30 vehicle sales per hour, totaling 120 per hour across all locations—equivalent to one car per minute, 24 hours a day, over three consecutive days. This sales spike coincided with the imminent expiration of Canada’s electric vehicle (EV) subsidy program, leading Tesla to file for C$43.1 million (US$30 million) in rebates. The amount represents more than half of the remaining C$71.8 million (US$50 million) allocated for EV subsidies, prompting scrutiny from officials.
According to the National Post, Tesla has recently struggled with sales in Canada, with deliveries declining approximately 70% between December 2024 and January 2025. While an uptick in sales was expected following the government’s announcement of subsidy reductions, the volume of transactions reported over the three-day period has raised concerns.
Data from Transport Canada indicates that Tesla sold 8,653 vehicles across the four stores during the weekend in question. However, a Transport Canada official told The Star, “Tesla didn’t sell those cars that weekend,” raising doubts about the nature of the transactions.
Impact on the Rebate System
Tesla’s surge in rebate claims significantly impacted other automakers and dealerships seeking to access the remaining EV subsidies. The Canadian Automobile Dealers Association (CADA) reported that 226 dealerships submitted rebate claims for 2,295 EVs but have yet to receive reimbursement, leaving them short by approximately C$10 million. In Quebec, where many dealerships are closed on weekends, the sudden depletion of funds effectively excluded some retailers from benefiting from the subsidy program.
Terry Budd, owner of eight dealerships in Canada, expressed frustration over the situation. He told The Star that he received no formal notice regarding the iZEV program’s conclusion, apart from a warning from CADA about dwindling funds. Budd estimates he is owed C$150,000 in rebates, with an additional C$25,000 in pending claims.
“The deal’s done, and we’re shy that money,” Budd said. When informed that a single Tesla store in Quebec reportedly sold 4,000 vehicles during the weekend, he responded, “There’s no way they delivered or sold that many cars in a weekend. They cleared everyone else out.”
Huw Williams, a CADA spokesperson, stated, “These dealers, in good faith, gave customers the money for a program that is always refunded. They shouldn’t be left making a payment on behalf of the Government of Canada.”
Tesla’s direct-to-consumer business model, where stores are company-owned rather than independently franchised, enables greater control over the sales and rebate process compared to traditional dealerships. However, the scale of the recent claims has raised questions among government officials.
Scrutiny Over Sales Figures
“Tesla had a run on the bank,” Williams said. “Somehow, Tesla gamed the system. What we can’t figure out is how this could have happened without setting off alarm bells.” He further suggested that the transaction volume was implausible, adding that “the registration gaming of this may be inappropriate.”
Transport Canada has clarified that no regulation prohibits Tesla from submitting rebate claims in bulk after delivering vehicles. While this could explain the volume of claims, uncertainty remains over the specifics of the sales. Further developments may clarify the situation as officials continue their inquiries.