Tesla claims it didn’t actually sell 8.6K cars in three days, its employees were simply submitting rebate applications for EVs that had already been sold
- Tesla sold 8,653 cars in three days, claiming $30M in rebates just before the deadline.
- Canada froze the rebates pending an investigation into whether Tesla gamed the system.
- Tesla says these were backlogged orders, not a shady practice, and threatens legal action.
Well, that took a minute, didn’t it? We’re talking about Tesla‘s response to the accusations that it sold a suspiciously huge number of cars in Canada right before the country’s EV rebate program was about to end. Critics and officials question if these were actual sales and whether the company was just gaming the system instead.
So what exactly happened in Canada? In early March, it came to light that four Tesla stores sold 8,653 cars in just three days and claimed C$43.1 million (US$30M) in rebates. This means that each store sold an average of 30 Teslas per hour, 24 hours a day, even when they were supposedly closed, for this three-day period. And if you believe that, I know someone who has a bridge to sell you.
Tesla Claims It Was All Legal, Officials Should Know Better
However, according to Electrek, in a letter dated March 28, Tesla’s director of sales and service for Canada, Fereshteh Zeineddin, says that those filings were normal and that Transport Canada, the government department responsible for the incentive program, should know better.
More: Tesla Accused Of Gaming Canada’s EV Rebate Program After 4 Stores Sold 2 Cars Per Minute Wiping Out $43M In Grants
He explains that many of these rebates were for cars that were already sold but dealers hadn’t simply filed for them yet. Thus, according to the EV maker, it wasn’t really a shady practice on Tesla’s part – just a case of its staff getting their priorities straight as the electric vehicle subsidy program was about to end. The company says that backlogged files were allowed anyway, so it did nothing wrong. Furthermore, these weren’t money that would end in Tesla’s pockets; rather, as per the program, dealers would offer the incentive to buyers and then get reimbursed by the government.
Frozen Rebates Must Be Paid, Or Else…
Tesla also took issue with Canada’s Transport Minister Chrystia Freeland ordering the rebates to be frozen “in order to fully examine each claim individually and determine whether all are eligible and valid,” as she told the Toronto Star. It adds that, due to this investigation, its employees are viewed negatively by the public and have been subjected to verbal abuse and harassment, and if Transport Canada doesn’t resume payments, it may pursue legal action.
Until the investigation is over, we have no way of knowing whether Tesla is telling the truth or not so, until then, it is presumed innocent until proven guilty. It is worth noting, however, that according to the National Post, Tesla deliveries in Canada plunged some 70 percent between December 2024 and January 2025, which makes this sudden surge peculiar. And if we had to guess, the huge drop in sales and the harassment incidents might be the result of Elon Musk getting increasingly political, not just in the US but wherever he sees fit, and not caused by Transport Canada’s investigation.
Bonus Irony: Musk’s Take on Canada
Speaking of Musk and Canada, here’s a bit of irony. Despite holding a Canadian passport and having lived there from 1989 to 1992, Musk recently posted on X that “Canada is not a real country.” He was responding, apparently in jest, to his political buddy Donald Trump’s suggestion that Canada should be annexed as the 51st U.S. state. Maybe he’s just trolling. Or maybe he’s trying to test how much diplomatic damage he can do from his phone.
Whatever the case, the Canadian government doesn’t seem amused—and it’s making very clear that Tesla’s C$43.1 million rebate claim isn’t going to slide through unchecked.
