Tesla followed the rules when it filed nearly 8,600 electric vehicle rebate claims just before the federal government ended its iZEV program in January, according to Transport Canada.
A spokesperson for Transport Minister Chrystia Freeland told The Canadian Press that the automaker’s submissions “were determined to legitimately represent cars sold before January 12.” The same criteria were applied to all dealerships.
The federal incentive program, officially called Incentives for Zero-Emission Vehicles (iZEV), offered up to $5,000 off new EVs. It was halted in mid-January after running through nearly $3 billion in funding over five years. Transport Canada had warned that the program would close once funds were depleted, which happened days after the January 12 cutoff.
Tesla’s high volume of last-minute claims, worth about $43 million, triggered a review. The federal government froze rebate payouts to the automaker until those claims could be verified. Tesla demanded the feds release the funds in May. While the timing raised concerns, Transport Canada found no evidence of fraud or wrongdoing.
One wrinkle in the process is that the federal rebate database doesn’t show when a vehicle was sold—only when the claim was submitted. That led to speculation about whether Tesla filed for cars it hadn’t delivered. But the department clarified that sales made before January 12 were valid, regardless of when the claims were submitted.
In a recent call with dealers, Transport Canada officials said they will reimburse outstanding rebates for EVs delivered before the cutoff. Dealerships will have a one-month window to file those claims, capped at 25 per day.
Due to recent U.S. tariffs, Tesla increased prices, but yesterday it slashed prices on the Model Y back to previous levels.
Since the program’s end, EV sales in Canada have slumped. According to Statistics Canada, electric vehicles made up 18.3% of new sales in December 2024—right before the program ended. By April 2025, that number dropped to 7.5%.
Ottawa has said that new EV incentives are in the works, but no date has been set. In the meantime, automakers warn that many buyers are holding off until new rebates are announced.
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EV's today: too expensive, limited range, problem filled, lemons. I was thinking about a Lyriq… Until I took a look at them on cars.com. Nearly every single one is a Lemon Law buyback.
Canada doesn't have Lemon laws like the USA, so be super careful.
And most people with functioning frontal lobes said “duh”.
Ths tricky part of living under rule of law is when it has to apply to people you don’t like. The “tantrums are policy” crowd will hopefully figure that out someday.
Too bad that "people with functioning frontal lobes" lost the election. Don't you have an orgasm every time you try to lift your elbows up and realize you actually have no reason for it.
At least you probably don't do the cringy chicken dance…. 🐥🐥
Sad situation….and it will get much worse before it gets better.
Too bad that "people with functioning frontal lobes" lost the election. Don't you have an orgasm every time you try to lift your elbows up and realize you actually have no reason for it.
At least you probably don't do the cringy chicken dance…. 🐥🐥
Sad situation….and it will get much worse before it gets better.