Between January 10 and January 12, after being warned that an EV rebate program was running out of funds, Tesla dealerships in Canada managed to claim 8,669 individual iZEV EV rebates, or about $43 million CAD in incentives. That’s a staggering number of sales to log in a single weekend.
Meanwhile, 200 other auto dealerships across Canada are left holding the bag for millions worth of rebates that Transport Canada may not be able reimburse after the funds ran out, according to excellent reporting in the Toronto Star.
At least the Canadian government is paying attention. Transport Minister Anita Anand is personally looking into it. She stated:
“I am disappointed. This report is unacceptable and I am asking the department that is responsible for administering this program to provide me with detailed and complete information.”
So what happened here? And how did the iZEV program run out of funds so quickly?
Tesla Dealerships in Canada Worked Inhumanly, Impossibly Fast to Sell EVs After Rebate Expiration Warning
Transport Canada sent an email on January 10 warning that the iZEV rebate program would run out of funds “in a few weeks.”
We found a full copy of that email, linked at the bottom of this article. That’s because even a broke clock is right twice a day, and we sometimes do good investigative journalism.
Well, “a few weeks” turned out to mean two days.
The warning email was sent out January 10th. The rebate program shut down on January 12. And wouldn’t you know it? Tesla dealerships had an absolutely stunning, record-breaking, gravity-defying sales rush in those final moments.
The iZEV program’s public statistics allow anyone to track which dealerships claimed rebates. A few Tesla locations claimed the vast majority of these incentives.
Let’s run the numbers:
- 8,669 iZEV rebates over three days claimed by Tesla dealerships.
- Mostly claimed by four Tesla locations.
- Tesla dealerships in Canada are open from 10 AM to 6 PM.
- That works out to 722 rebates per primary dealership per day.
- Which equals 90 iZEV rebates per hour.
- Or 1.5 Tesla sales per minute.
Let’s take a step back. Two Tesla sales every 90 seconds? That’s absurd. A good car salesperson might close two deals in two hours, not per minute. And that’s in a normal sales environment… not one where every eligible car has to be processed for a government rebate at the same time.
Like, what? And that’s not even counting the geopolitical factors at play, which are significant.
“Make This Make Sense for Me, Would You?”
If this were just another case of Tesla playing fast and loose with the government programs that make every one of Musk’s businesses run, well, no shocker there. But let’s add some geopolitical spice to the mix, just for fun.
Elon Musk, the very visible face of Tesla, is backing Donald Trump in the American Oval Office. Trump, in turn, is threatening Canada with aggressive trade tariffs. Canadian officials have even raised concerns about U.S. “annexation” rhetoric from noteworthy Americans, including both Elon Musk and #47 (#45 and maybe #48 too? jeez, I don’t know). Canadian citizens evidently hate every single thing about this.
So in that context, let me ask you: How believable is it that Tesla sold 1.5 cars per minute in Canada in January 2025, in a proud country that is very much not interested in being annexed by the home country of Tesla? Not very believable, right?
Canadian authorities seem to feel the same way. And given how this is unfolding, expect to see this story on the front page of every Canadian newspaper before long.
Full Text of Transport Canada’s Email to Auto Dealerships
The full text of the email Transport Canada sent on January 10, warning that funding would run out “in a few weeks”:
“Hello,
The Incentives for Zero-Emission Vehicles (iZEV) Program, which launched on May 1, 2019, was set to end on March 31, 2025, or sooner if available funding was fully exhausted prior to this date. Due to the high uptake, the iZEV Program will be paused in a few weeks. Transport Canada will notify you when the iZEV Program is officially paused and advise you to stop offering incentives to customers.
Prior to the pause taking effect, new requests may be submitted as per usual until further updates are communicated. During this transitional period, we kindly request your cooperation in ensuring the accuracy of the information when submitting requests. Additionally, please note that, even when the program is paused, requests that successfully passed the eligibility assessment will be reimbursed.
Please note that it is the responsibility of dealerships and authorized sellers to notify their customers who have ordered eligible vehicles that they may not receive the federal incentive. The iZEV Program will not reimburse incentives for sales and leases that did not get through the eligibility assessment in the web portal prior to the program pause.
It is also important to note that this email is solely for the Incentives for Zero Emission Vehicles (iZEV) Program and not the Incentives for Medium- and Heavy-Duty Zero Emission Vehicles (iMHZEV) Program.
We encourage you to visit our Frequently Asked Questions webpage as they have been updated with regards to the program pause. The iZEV Program’s remaining budget is available and updated weekly at the following link: iZEV program statistics (canada.ca)
We appreciate your continued participation and support.
Should you have any questions or concerns, please feel free to reach out at [redacted].
iZEV Program Transport Canada”
