Tesla Under Investigation for High Volume of EV Rebate Requests in Canada

Transport Canada is investigating Tesla after an unusually high number of EV rebate claims were submitted before the iZEV program ended. Find out what’s at stake in this growing controversy.

Tesla has come under scrutiny from Transport Canada due to an unusually high number of rebate requests submitted in the final days of the country’s electric vehicle incentive program. Over just three days before the program’s closure, the automaker submitted 8,653 rebate claims—more than half of the remaining government-allocated funds for EV subsidies.

The most striking case involved a Tesla dealership in Quebec, which reportedly submitted over 2,500 applications in a single day and around 4,000 over the weekend. Such a surge raises serious doubts about whether these transactions were processed legitimately. Even considering Tesla's direct sales model and strong demand, handling that volume of sales in such a short time seems highly improbable.

Beyond government scrutiny, the situation has also impacted other market players. The Canadian Automobile Dealers Association (CADA) reported that due to Tesla’s overwhelming number of rebate requests, many customers of other manufacturers were unable to secure the subsidies they had counted on. As a result, 2,295 applications were left unprocessed, with an estimated shortfall of about CAD 10 million in incentives.

Transport Canada has launched an investigation, requesting detailed clarifications from Tesla. Officials are examining whether the rebate requests met the iZEV program’s eligibility requirements and whether the vehicles were actually delivered to customers within the necessary timeframe.

The iZEV (Incentives for Zero-Emission Vehicles) program, launched by the Canadian government, provided rebates of up to CAD 5,000 for EV buyers. However, due to overwhelming demand, its allocated budget ran out earlier than anticipated, leading to its abrupt termination in January 2025.

The full impact of this situation on Canada’s EV market remains uncertain. However, it is clear that the end of the incentive program and potential irregularities in rebate distribution could shift the industry’s dynamics. The key questions now are whether Tesla will acknowledge any wrongdoing if violations are found and what measures the government will take to prevent similar incidents in the future.

Source: electrek.co