Canada halts rebate payments to Tesla amid eligibility concerns

Photo : Instagram / @straightouttathe6ixtv

Canada has stopped giving money back to people who buy Tesla cars. The government has also said Tesla cannot join any new money-back programs for electric cars in the future. This was announced by Transport Minister Chrystia Freeland on Tuesday. She said no more payments will be made to Tesla until each claim is checked and found to be correct.

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Freeland also told the transport department to change the rules for future electric car programs. She said Tesla cars will not be allowed to get rebates as long as the U.S. keeps putting extra taxes on Canadian products.

Tesla has not given any reply about this matter yet.

This decision comes after U.S. President Donald Trump announced new extra taxes, many of which will start in early April. These include a 25% tax on many goods coming from Canada and Mexico. Trump also said that car taxes are coming soon, though not all of them will start on April 2.

Reports say that Canada has stopped about C$43 million ($30.11 million) in rebate payments meant for Tesla. According to a news report, the order to stop the payments was made before Prime Minister Mark Carney announced elections will be held on April 28.

One report also said Tesla had asked for a huge number of rebates just before the government program ended in January. A Tesla store in Quebec City claimed almost C$20 million by saying they sold more than 4,000 electric cars in just one weekend.

Because of trade problems with the U.S., Toronto has also stopped giving money to people who buy Tesla cars for taxis or ride-sharing services.

At the same time, Tesla’s owner, Elon Musk, who is close to Trump, has been helping the White House make the government smaller and spend less money. He is leading a plan called the Department of Government Efficiency, which focuses on saving money and working better.

Tesla is already facing problems like fewer sales in Europe and more competition in the electric car market. Now, Canada’s decision to stop rebates and block Tesla from future programs may bring more trouble for the company.