March 25 (Reuters) - Canada has frozen all rebate payments for Tesla and banned
the electric-vehicle maker from future EV rebate programs, Transport Minister Chrystia Freeland
said on Tuesday.
No rebate payments will be made until each claim is individually investigated and determined
to be valid, Freeland said in an emailed statement shared by her office.
Freeland also directed the transport department to revise eligibility requirements for
future iZEV programs to ensure that Tesla vehicles are not eligible as long as the "illegitimate
and illegal U.S. tariffs are imposed against Canada."
Tesla did not immediately respond to a Reuters request for comment.
U.S. President Donald Trump has imposed a slew of new tariffs, with the bulk due in early
April, in the form of steep 25% taxes on most goods from Canada and Mexico.
Trump on Monday said automobile tariffs are coming soon, although not all of his threatened
levies would be enforced on April 2.
Canada has frozen C$43 million ($30.11 million) of rebate payments for Tesla. The order to
stop the payments came before Canadian Prime Minister Mark Carney announced a general election
on April 28, according to the Toronto Star, which reported the news earlier.
The Star reported earlier this month that Tesla filed an extraordinary number of EV rebate
claims in the final days of the program in January, with a single Tesla dealership in Quebec
City claiming nearly C$20 million in public subsidies by documenting more than 4,000 electric
vehicle sales over a single weekend.
Toronto stopped providing financial incentives for Tesla vehicles purchased as taxis or ride
shares because of trade tensions with the U.S. earlier this month.
Tesla CEO Elon Musk, a close ally of Trump, has been leading the White House effort to
shrink the federal government and budget as the head of the so-called Department of Government
Efficiency.
($1 = 1.4279 Canadian dollars)