Transport Canada is investigating Tesla over a suspiciously high number of rebate requests filed in the final days of Canada’s EV incentive program. Reports indicate that a single Tesla dealership in Quebec claimed to have delivered around 4,000 vehicles in one weekend—an amount that seems physically impossible.
In January, the Canadian government announced that funds for its $5,000 EV rebate program were running out faster than expected. Initially set to end in March, the program was instead cut off at the end of January, leading to a rush in last-minute vehicle deliveries.
As Canada’s top-selling EV brand, Tesla naturally benefited from the surge in demand. However, new data has raised concerns. According to the Toronto Star, four Tesla locations filed for 8,653 rebates in the program’s final three days, amounting to $43.1 million—over half of the remaining $71.8 million in funds. Tesla’s Quebec City dealership alone submitted over 2,500 rebates in a single day and 4,000 over the weekend, raising doubts about whether all those cars were actually delivered.
As a result, many other dealerships have been left without reimbursements. The Canadian Automobile Dealers Association (CADA) reports that its members are still waiting for approximately $10 million in rebate payments for 2,295 EVs they delivered.
CADA spokesperson Huw Williams criticized the situation, stating:
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.
In response, Transport Canada has initiated an inquiry, calling the report “unacceptable.” Meanwhile, some dealers, like Ontario’s Terry Budd, believe Tesla “gamed the system,” claiming there’s no way the company delivered that many vehicles in such a short time.
Canadian dealers are now waiting to see if the government will reimburse them for the rebates they issued in good faith.
