Tesla Accused of Manipulating Canada’s EV Rebate Program as 4 Stores Sold 2 Cars Every Minute, Depleting $43M in Grants | Carscoops

      All of this took place over three days, just prior to the expiration of Canada's electric vehicle subsidies.

      18 hours ago

      by Stephen Rivers

      In a short span of three days, Tesla sold over 8,600 vehicles at four locations before the rebate program concluded.

      This spike in sales resulted in more than $43.1 million in rebates claimed by Tesla.

      The astonishing figures have caused dealers to question the authenticity of these sales.

      Across the four Tesla locations in Canada, each store averaged 30 car sales per hour, totaling 120 cars per hour across all stores—essentially equating to one car sold every minute, 24/7 for three consecutive days. This includes sales made during closed hours.

      This remarkable sales surge just happened to align with the approaching end of Canada's electric vehicle subsidies, prompting Tesla to submit claims for C$43.1 million (US$30M) in rebates. This amount represents over half of the remaining C$71.8 million (US$50M) designated for EV rebates, raising eyebrows among officials about how Tesla managed this feat.

      Remember, Tesla is currently facing challenges in sales within Canada. The National Post reported a 70 percent drop in deliveries from December 2024 to January 2025. With the Canadian government's announcement of an impending end to electric vehicle subsidies, a slight uptick in Tesla's sales was anticipated; however, such a dramatic surge was unforeseen.

      In total, Tesla reportedly sold 8,653 cars in just three days across four Canadian stores. These figures were sourced from Transport Canada, the agency responsible for rebate allocations. An official from this agency commented to The Star that “Tesla didn’t sell those cars that weekend.”

      The Effect on the Rebate System

      While these sales benefit Elon Musk’s company, they have left competing brands without access to the same EV credits. Tesla's C$43.1 million in rebates utilized more than half of the remaining EV subsidy funds. By the time other dealerships tried to claim their rebates, the budget was depleted, and many were affected.

      As per the Canadian Automobile Dealers Association (CADA), 226 dealerships filed rebate claims for 2,295 electric vehicles but have yet to receive reimbursements, collectively totaling C$10 million in unreimbursed claims. Additionally, in areas like Quebec, numerous dealerships are closed on weekends, denying them the ability to partake in this "sales surge."

      Dealers Left in the Lurch

      Terry Budd, who operates eight dealerships in Canada, expressed his astonishment at the situation. He informed The Star that he had not received any formal notification regarding the end of the iZEV program, only a notice from CADA that funds were running low. Budd estimates he is out C$150,000 for submitted rebates, along with another C$25,000 for unprocessed claims.

      “The deal’s done, and we’re missing that money,” Budd stated. “Nobody can confirm if we will be compensated.” Upon learning that a single Tesla store in Quebec allegedly sold 4,000 cars over the weekend, Budd was incredulous. “There’s no way they could have delivered or sold that many cars in a single weekend,” he remarked. “They cleared out everyone else.”

      Huw Williams, a CADA spokesperson, emphasized, “These dealers, acting in good faith, extended money to customers for a program that is typically reimbursed. They shouldn't be left to cover costs on behalf of the Government of Canada.”

      Unlike many dealerships, Tesla's Canadian outlets are company-operated and fully controlled, which gives Tesla an edge in handling rebate claims and the sales process compared to independently-owned dealerships.

      Canadian officials are now scrutinizing how Tesla achieved this outcome.

      “Tesla had a run on the bank,” said Williams. “Somehow, Tesla manipulated the system. We just can’t understand how this could have occurred without alerting anyone.” He also remarked that it seems implausible that Tesla could sell such a large volume of cars, suggesting that “the registration manipulation may be inappropriate.”

      A Gray Area?

      Transport Canada has noted that there is no prohibition on Tesla filing rebate paperwork in bulk after the vehicles are delivered. This may explain the situation, but many uncertainties remain regarding the specifics. More developments may arise in the upcoming weeks—potentially triggering further alarms.