We know Elon Musk isn’t exactly the most well-liked person in the universe, and let’s just say he has a strong personality that hasn’t exactly earned him many friends with all his statements.
Now, Canada has joined the list of governments that aren’t particularly fond of Musk, and in its new subsidy program for electric vehicles, Tesla is nowhere to be found. Naturally, this has sparked debate over whether economic, political, and environmental interests can afford to respond to this shift. Here’s everything about the “beef” surrounding the issue.
No more public funding
As you read above, Canada has left Elon Musk off its list, there will be no taxis, rental cars, or ride-shares from Tesla.
In recent months, the relationship between Canada and the United States hasn’t been at its best, due, of course, to the U.S. (Trump had called for the annexation of Canada!), adding tariffs to Canadian products, which understandably didn’t sit well with their neighbour.
Revenge is always best served cold
That’s what they say, and now Toronto is promoting electric vehicles to reduce emissions. The only eligibility requirement for this benefit is to buy or lease an electric vehicle, meaning those who adapt will get a discount on registration and renewal fees through 2029. Except for Tesla.
As of March 1, 2025, Tesla vehicles are no longer eligible for this subsidy. “They can buy another car,” said the mayor.
But of course, this wasn’t a decision made lightly, it came right after Tesla CEO Elon Musk, now one of Trump’s top personal advisors, claimed he wanted Canada to become another U.S. state, the 51st. Unsurprisingly, that didn’t go over well with a sovereign and independent country. (In fact, Canada would rather be the 28th partner of the European Union.)
Therefore, Tesla models, most of which are produced outside the national territory, have been removed from the playing field.
Musk calls for war
True to form, Musk didn’t stay quiet. On social media and through public statements, he claimed this move is more of a covert trade war than a truly green policy. To him, it’s “an unfair penalty against innovation.”
From his point of view, Tesla has been one of the companies most responsible for driving the global energy transition. So why exclude the one who led the change? That’s the question he raises, and many consumers are asking it too.
“Buy another car”
That phrase, unsurprisingly, doesn’t sound very conciliatory, and Tesla clearly took it as a snub. Until now, Tesla was the ideal choice for those wanting to join the energy shift, but now the Canadian government is prioritizing the protection of national industry (and identity).
Beyond cars
At its core, this controversy goes beyond cars, and we knew that already, since politics and economics never move without strategy. What’s really at stake is control over the electric market and governments’ ability to shape it at will. While Elon Musk pushes for the globalization of his vehicles, Canada has decided to close ranks and protect its own auto industry, plain and simple.
What’s next for Tesla in Canada?
Although Tesla still operates in the country and you can still buy its cars, its competitiveness will obviously take a hit from this news, at least in the short term. Perhaps Tesla has its own ace up its sleeve and will manage to overcome the situation before the market overtakes them in this country. Who knows.
