Photo by Dmitry Novikov on Unsplash This remarkable spike in sales coincided with the depletion of Canada’s EV rebate fund, which led officials to speculate whether Tesla had managed to exploit the system to maximize its rebate claims before the funds were exhausted. Transport Minister Chrystia Freeland confirmed the government’s action, stating she directed her department to stop payments for Tesla vehicles “in order to fully examine each claim individually and determine whether all are eligible and valid.” She added, “No payments will be made until we are confident that the claims are valid.” Minister Freeland also announced changes to future program eligibility criteria, directing her department “to ensure that Tesla vehicles will not be eligible for incentives so long as the illegitimate and illegal US tariffs are imposed against Canada.” This links the company’s eligibility for Canadian incentives to national-level trade disputes largely beyond its direct control, although Elon Musk is noted as having a close relationship with the American President. The decision also had consequences for local dealerships. Minister Freeland mentioned that the government would reimburse more than 200 independently owned auto dealers who were reportedly left out of about CA$10 million after fronting rebates to customers based on the expectation of federal reimbursement which they could not file for. Flag of Canada: Alternate Designs | The Canadian Encyclopedia, Photo by d3d0lqu00lnqvz.cloudfront.net, is licensed under CC BY-SA 4.0 Huw Williams, spokesman for the Canadian Automobile Dealers Association (CADA), reportedly welcomed the government’s move. He told the Toronto Star that CADA “has been shocked at the revelations that Tesla was somehow allowed to … take $43 million in rebates while locally owned dealers have been left holding the bag on funds advanced to customers on behalf of the federal government.” Mr. Williams remarked that while the investigation freeze is a step in the right direction, it should have occurred much earlier, highlighting Tesla’s significant advantage in Canadian EV rebates, having collected $713 million since 2019, far surpassing any other recipient. Beyond the Canadian rebate situation, Tesla is also facing broader challenges in its core business. The company recently announced its results for the first three months of 2025, which reportedly represent the steepest sales decline in company history. Tesla Model X Plaid 2025 2 Wallpaper – HD Car Wallpapers #29050, Photo by hdcarwallpapers.com, is licensed under CC BY-SA 4.0 Tesla’s Sales Plunge: 2025 Q1’s Historic Drop and Cybertruck Stalemate Deliveries fell by 50,000 vehicles during this period, totaling 336,681 cars, down 13% from the same quarter in the previous year. This marked Tesla’s worst quarter for deliveries since 2022, a notable slowdown compared to its historical growth trajectory. Market analysts had largely anticipated a significant sales decline for the quarter. This expectation was based in part on unfavorable sales figures emerging from Europe and the fact that Tesla had temporarily closed some factories to implement updates on production lines for the new Model Y vehicle. There was a hope among some observers that prospective buyers might have intentionally delayed their purchases while waiting for the updated version of Tesla’s most popular car to become available. However, social media reports indicated that the updated Model Y vehicles became available relatively quickly at the start of March. File:2024 Tesla Cybertruck Foundation Series, front left (Greenwich).jpg – Wikimedia Commons, Photo by wikimedia.org, is licensed under CC BY-SA 3.0 Adding to concerns about demand, Electrek recently reported that Tesla currently holds approximately $200 million worth of its Cybertruck vehicles in unsold inventory. The “other vehicles” category in Tesla’s results, which includes models like the Model S, Model X, and the Cybertruck, saw a decline of 12,000 vehicles compared to the same period last year. The performance of the ‘other vehicles’ category has raised concerns that the Cybertruck, Tesla’s latest vehicle since the Model Y, might be facing an uphill battle, a situation many are describing as ‘dead on arrival,’ reflecting struggles in generating substantial sales momentum for this eagerly awaited model. It is difficult to ignore the broader issues facing Tesla, particularly the intense politicization of the brand that has occurred under the leadership of Elon Musk. This factor is widely seen as contributing to challenges in attracting and retaining certain customer segments. Product on Amazon: Hot Wheels Tesla Cybertruck, HW Rolling Metal 4/5 [Silver] 246/250 Brand: Hot Wheels