Tesla Suspected Of EV Rebate Manipulation In Canada Amid Sudden Sales Surge Before Deadline: 'Tesla Gamed The System', Says Industry Body

Namrata Sen

March 10, 2025

Benzinga

Four Canadian stores of Tesla Inc. (NASDAQ:TSLA) have been suspected of exploiting the country’s EV rebate program. The stores are said to have sold an average of 30 cars per hour over three days, claiming over 50% of the remaining rebate funds.

What Happened: Four Tesla stores in Canada managed to sell an average of 30 cars per hour, amounting to 120 cars per hour across all four locations, as reported by the Toronto Star on Friday.

This sales boom lasted for three consecutive days, even during hours when the stores were supposedly closed. Reportedly, a total of 8,653 cars were sold during the final 72 hours of the EV rebate program, also known as the iZEV Program.

Consequently, the Elon Musk-led company applied for C$43.1 million ($30 million) in rebates, which is over half of the remaining C$71.8 million ($50 million) allocated for EV rebates.

The iZEV rebate program provided incentives ranging from C$2,500 ($1740.29) to C$5,000 ($3480.57) for purchasing electric vehicles and plug-in hybrids. Dealerships applied the rebate directly to the purchase price, anticipating reimbursement from the government.

Tesla did not immediately respond to Benzinga’s request for comment.

As a result of the incident, the rival brands haven’t been able to access the EV credits as Tesla claimed more than half of them. The Canadian Automobile Dealers Association (CADA), has received rebate claims for 2,295 electric vehicles from 226 dealers who are yet to receive the reimbursement, resulting in a collective shortfall of C$10 million.

CADA’s spokesperson, Huw Williams, told the Toronto Star, "Somehow, Tesla gamed the system. What we can't figure out is how this could have happened without setting off alarm bells."

Notably, Transport Canada, the body which oversees the iZEV rebate program, has not clarified whether any wrongdoing took place. It also stated that there is no restriction preventing Tesla from submitting rebate paperwork in bulk after delivering sold cars.

Why It Matters: Tesla has been struggling in Canada, wherein thousands of Canadians have even signed a petition for revoking Musk’s Canadian citizenship. According to data from shop4tesla.com, the EV maker’s sales in Canada have dropped by approximately 70% between December 2024 and January 2025.

This surge in sales comes on the heels of Tesla’s recent offer of lifetime free supercharging for new Foundation Series Cybertruck purchases in Canada. Tesla announced this offer to make the expensive truck more appealing to customers. The offer, valid for orders placed on or after March 5, lasts for the duration of the customer's ownership of the vehicle and is non-transferable.