American EV (electric vehicle) maker Tesla (TSLA) has lost its EV rebates in Canada. The government froze all pending payments and banned the automaker from future incentive programs. This comes after the U.S. slapped heavy tariffs on Canadian goods, sparking trade tensions.
Freeland’s Stance on EV Incentives
Canada’s Transport Minister, Chrystia Freeland, stated that all pending Tesla rebate claims will be individually reviewed to ensure their validity. She also instructed the transport department to update eligibility rules for future iZEV programs, ensuring Tesla remains excluded as long as the U.S. maintains what she called “illegitimate and illegal” tariffs on Canada.
This move affects approximately C$43 million ($30.11 million) allocated for Tesla rebates. This is part of Canada’s pushback against U.S. trade policies, including a 25% tariff on some Canadian exports.
Local Governments Are Joining In
Toronto has followed suit by removing Tesla from its EV incentive list for taxis and ride-sharing services. Toronto’s mayor, Olivia Chow, said that this measure would remain until trade disputes with the U.S. are resolved.
Earlier this month, British Columbia took similar action, cutting Tesla’s EV charging stations and home batteries from its rebate programs due to the ongoing trade dispute.
These developments add further uncertainty to Canada’s EV market, directly impacting Tesla’s operations and consumer incentives. As a result, Teslas will become more expensive for Canadian buyers without rebates. With trade tensions still unresolved and no deal in sight, both Tesla and its customers could be in for a challenging road ahead.
What Is the Prediction for Tesla Stock?
Wall Street is cautious about Tesla’s stock as global protests against the EV maker grow. Also, Tesla’s European sales dropped again in February, hit by rising competition in the EV market and growing backlash against CEO Elon Musk.
On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 11 Holds, and 11 Sell ratings. Also, the average Tesla price target of $335.32 implies 16.37% upside potential from current levels. Year-to-date, TSLA stock has lost 28.65% due to the growing tensions.
