Tesla faces scrutiny over millions in Canadian subsidies

In news that is not always easy against a backdrop of controversies and declining sales, this is a highly symbolic legal victory for Tesla.

The American manufacturer Tesla has just been officially exonerated by Canadian authorities in the case involving the contested 43.2 million Canadian dollars (approximately 29 million euros) in subsidies under the iZEV (Incentives for Zero-Emission Vehicles) program. Transport Canada concluded its investigation stating that it found no evidence of fraud.

The case began in January 2025, when a dramatic influx of 8,653 reimbursement requests in a single weekend drew the authorities’ attention. Within 72 hours, Tesla submitted requests covering more than half of the remaining budget (71.8 million Canadian dollars), with over 4,000 coming from a single store in Quebec.

Tesla followed the rules properly

Critics spoke of an “impossible logistical feat,” suspecting maneuvers to circumvent the rules. However, Tesla explained that these requests reflected deliveries that had already taken place, with the administrative formalities being expedited after the announcement of the impending end of the subsidies.

The investigation now confirms this version, which honestly left no doubt. The vehicles in question were indeed eligible, with the processes compliant with the program rules, which allowed post-delivery requests. This verdict sets the record straight and allows Tesla to recover the 43 million that had been frozen for several months. A small amount for the manufacturer, but a strong symbol for American automotive.

However, the victory comes with a bitter taste. Despite its proven regularity, Tesla will remain excluded from future iZEV initiatives, in a tense context between Ottawa and Elon Musk, amid a trade war with the United States. The brand criticizes a “failing” communication from the Canadian government, having learned about the freezing of funds through the press.

With 1,400 employees in Canada and significant investments in local research, Tesla certainly emerges cleared of all suspicion, but still harbors a sense of injustice regarding its treatment. For the manufacturer, the battle of facts is won. The battle for trust, however, remains to be rebuilt.

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