Tesla's Canadian dealerships accused of fraud over $43 million in EV rebates

Friday 14 March 2025 - 13:20

By: Dakir Madiha

Tesla's Canadian dealerships accused of fraud over $43 million in EV rebates

Tesla is currently embroiled in serious allegations of fraud in Canada, as four of its dealerships face scrutiny after claiming an astounding $43 million in government rebates for electric vehicles (EVs) within just 72 hours. This rapid depletion of funds has led to the unexpected suspension of the country's Incentives for Zero-Emission Vehicles (iZEV) program.

Launched in May 2019, the iZEV program aimed to combat greenhouse gas (GHG) emissions, which, at the time, accounted for a quarter of Canada’s total emissions, with passenger vehicles contributing significantly to that figure. In an effort to promote the adoption of zero-emission vehicles among both consumers and businesses, the Canadian government introduced financial incentives—such as a $5,000 rebate on eligible EV purchases.

Despite the program scheduled to conclude on March 31, 2025, its popularity caused rapid depletion of the allocated funds, prompting the government to suspend the program earlier than expected. Mere hours after officials disclosed this impending cessation, the four Tesla dealerships purportedly reported the sale of approximately 8,600 vehicles between January 10 and January 12.

Data reveals that these transactions consumed $43 million from the iZEV fund, halting the program on January 12, just three days following the announcement. Canadian media has expressed skepticism regarding the dealerships’ claims, particularly the assertion that they could sell over 2,500 vehicles in a single day—a feat deemed implausible given the capacity of the physical locations of the stores.

Experts agree that for every customer slot lasting 20 minutes, it would take an extraordinary 850 hours to complete all transactions. This scenario would necessitate around 70 employees working round-the-clock shifts to achieve such a sales volume, raising further doubts about the legitimacy of the dealerships’ claims.

The allegations have ignited outrage among auto dealers across Canada, who feel disheartened that they may have missed out on potential millions of dollars in rebates. As investigations are reportedly underway by Transport Canada—the governmental body overseeing transportation policies—Tesla has yet to issue a statement addressing these serious accusations. Efforts to reach representatives at the implicated dealerships have so far been unsuccessful.