The Canadian government’s popular electric vehicle rebate program, known as the Incentives for Zero-Emission Vehicles (iZEV) program, faced an unexpected halt in January 2025, leaving many dealerships and consumers in a state of uncertainty. Internal records obtained by The Canadian Press revealed that federal officials were aware of the program’s impending exhaustion of funds as early as November 2024, but delays in approval processes resulted in a delayed public notification.
The sudden surge in rebate claims during the program’s final weekend led to a depletion of funds, with Tesla alone accounting for a staggering $43 million out of the $48 million requested in just 72 hours. This influx of claims, deemed legitimate backlogged sales by the government, effectively cleared out the remaining budget and left other dealerships unable to file for rebates.
The abrupt pause in the rebate program had significant repercussions on the electric vehicle market, causing a sharp decline in EV sales from 18% of total vehicle sales in December 2024 to less than 7% by February. Dealerships were left facing millions in outstanding payouts, creating market uncertainty and impacting consumer confidence.
Transport Minister Steven MacKinnon has pledged to closely monitor and manage the reinstated funds to ensure a more orderly process moving forward. The government aims to prevent a similar situation from occurring in the future and provide a more stable environment for dealerships and consumers in the electric vehicle industry.
In other news, Abu Dhabi has recently initiated trials of Tesla’s Full Self-Driving (Supervised) technology, marking the first live trials of the software in the United Arab Emirates. Additionally, Canadian Tesla owners can now participate in the WattsApp charging rewards program, which offers financial incentives for home charging sessions. Tesla owners in Australia and New Zealand have also received an upgrade to the advanced AI assistant Grok, enhancing the driving experience for local Tesla owners.