You Haven’t Heard the Full Story: Here’s Why Tesla Won’t See a Single Cent from Canada

Written by Josefine Bagger Sommerlund

Mar.31 - 2025 12:27 PM CET

Autos
Photo: Mike Mareen / Shutterstock.com
Foto: Mike Mareen / Shutterstock.com
Canada pauses its funding – and Tesla is being excluded.

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Canada refuses to pay millions to Tesla. The case involves suspicion, strict regulations, and a decision that has surprised many.

Background

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  • Tesla is demanding payment from the Canadian government

  • Amount in question: USD 30 million

  • The dispute centers around a tax incentive program Tesla believes it qualifies for

What’s the Dispute About?

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  • Canada has a program offering tax benefits for electric vehicle manufacturers

  • Tesla claims it meets the eligibility criteria

  • Authorities disagree and have rejected the claim

Canada’s Firm Rejection

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  • Chrystia Freeland, Canada’s Transport Minister, not only halted the large payout to Tesla

  • She also suspended all future support payments – but only in Tesla’s case

  • The government says Tesla fails to meet key program requirements

Suspicions of Foul Play

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  • The government is withholding the funds due to suspicions of misconduct

  • Tesla is accused of artificially inflating sales numbers shortly before the program ended

  • This raises concerns about potential data manipulation to maximize the financial benefit

Tesla’s Response

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  • Tesla criticizes the decision, calling it unfair

  • The company is considering legal action

  • Tesla claims it is being treated differently than its competitors

Consequences and Broader Implications

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  • The case could set a precedent for other manufacturers

  • Tensions are growing between Tesla and governments in several countries

  • The decision could impact Tesla’s future investments in Canada