Nova Scotia has recently joined other provinces in cutting electric vehicle rebates for Teslas, citing CEO Elon Musk’s association with the U.S. administration and its trade war on Canada. The Progressive Conservative government, along with the NDP and Liberal opposition parties, voted to remove Tesla from the rebate program, which provides subsidies ranging from $2,000 to $3,000 per purchase. This decision followed a call from NDP member Susan Leblanc to drop Tesla from the subsidy program as a way to take a stand against Musk aligning himself with U.S. president Donald Trump.
Manitoba and BC Hydro have also excluded Tesla and Chinese-made electric vehicles from their EV rebate programs. BC Hydro specifically stated that they are banning new Tesla products from their rebate initiative in order to prioritize Canadian goods and avoid U.S. products when possible. Tesla chargers, batteries, and inverters are included in this ban. The move to exclude Tesla from rebate programs in Canada is in response to Musk’s close alliance with Trump, who has imposed tariffs on Canadian steel and aluminum and has plans for additional levies.
Musk’s role as an adviser to Trump has sparked protests across Canada, with demonstrators picketing Tesla outlets and carrying signs against driving a Tesla. In some cases, vandalism has also occurred, with obscene remarks spray-painted on dealership walls. In the United States, Tesla showrooms, vehicle lots, and charging stations have been targeted, with individuals being charged for attacking Tesla dealerships. Tesla’s shares have been struggling due to increasing competition from rival electric vehicles, particularly from China, leading to a 42 percent decrease so far this year.
Although Tesla does not release sales figures for Canada, data from Transport Canada’s zero-emission vehicle program indicates that approximately 33,000 Teslas received rebates for new purchases in the nine months ending on Dec. 31. This is a 15 percent decrease on a per-month basis compared to the previous fiscal year, where around 50,000 Teslas received rebates. The response to Musk’s ties to the U.S. administration and the trade war has led to Tesla facing challenges in Canada and the United States, with backlash from consumers and government authorities impacting the company’s operations and reputation.
The controversy surrounding Tesla and its CEO Elon Musk highlights the complexities of international trade relations and the impact of corporate affiliations with political figures. The decision by Nova Scotia to drop Tesla from electric vehicle rebate programs due to Musk’s association with the U.S. administration underscores the influence of geopolitical factors on economic decisions. As Tesla faces challenges in Canada and the United States, the company’s future success may depend on its ability to navigate these political tensions and maintain a positive image among consumers and regulators.
