Tesla Canada responds to alleged last-minute $43 million EV rebate grab

Tesla has denied allegations that it gamed the system by rushing through an unusually large volume of Canada’s iZEV rebate claims at the last minute. The automaker submitted $43 million worth of incentives in a single weekend as the government rounded off the program due to running out of funds. This prompted an investigation, during which compensation remained frozen.

In a March 28th letter to Transport Canada, Tesla attempted to prove it had done everything according to the book. The company’s Director of Sales & Service for Canada, Fereshteh Zeineddin, explained Tesla merely filed incentive claims for a backlog of EV sales that happened before the government announced the end of the scheme. It did not benefit from any funds released by the government because the reduction went to the customers, who effectively got the rebate in advance.

According to the letter, dealerships and automakers could allow eligible buyers to pay the car cost minus the worth of the incentives they were entitled to.

Tesla protested learning of the freeze in rebate payment through the media. It was also not happy with the harassment its employees and customers faced as a result of the negative press. The carmaker hinted it could head to the courts if the government does not honor its word by releasing the frozen funds.

Tesla has been the subject of attacks in Canada as the country remains embroiled in a tariff war with the neighboring US. The company was recently booted out of a popular auto show due to safety concerns.