The federal investigation into Tesla’s $43 million in iZEV rebate claims has now begun, with Transport Canada carefully reviewing each submission. There is no set timeline for when or if the funds will be released, but industry sources report that internal audits are underway at the four Tesla locations responsible for the majority of the filings. In the meantime, local dealers are still waiting for reimbursement of millions in unrecovered rebates, putting pressure on the government to address the situation promptly.
The controversy began when Tesla locations across the country swiftly claimed over $43 million CAD in public funds in just three days. Initially, Transport Canada’s website stated that dealerships “must” apply for rebates before delivering vehicles to customers. However, Tesla managed to file for rebates on 8,653 vehicles over a single weekend in January, a volume that seemed impossible to achieve while following the original rules. Shortly after this surge in rebate claims was exposed, the wording on the website was quietly changed from “must” to “should,” allowing for retroactive filings that appeared to legitimize Tesla’s actions. The modification date on the website, however, still reflects July 5, 2024, raising concerns about transparency and accountability.
Critics, including public law professor Ian Stedman from York University, have expressed skepticism about the timing and nature of the website changes, suggesting a possible attempt to conceal discrepancies or policy alterations. Despite requests for comment from the media, neither Transport Canada nor Finance Minister Chrystia Freeland’s office has provided a response to the situation.
Tesla’s rapid actions claimed a significant portion of the remaining funds in Canada’s iZEV program, leaving other dealerships in a precarious position. Dealers who had fronted rebates to customers now find themselves out millions of dollars, with some, like Terry Budd who owns eight dealerships in southern Ontario, still awaiting reimbursement. Budd emphasized that it is unlikely Tesla could have delivered or sold that many cars in a single weekend, casting doubt on the legitimacy of their rebate claims.
The situation has not only raised questions about the enforcement of rebate rules but has also sparked ethical and fairness concerns. Public policy professor Akolisa Ufodike from York University highlighted the questionable ethics of the situation, noting that the minister has the authority to override the rules but must consider the broader implications of such decisions.
Beyond the financial implications, the controversy has also exacerbated political tensions, with Tesla becoming a target for protests due to CEO Elon Musk’s ties to the U.S. administration. Several provinces, including B.C., Manitoba, and Nova Scotia, have excluded Tesla from their rebate programs in response to the controversy. As the investigation unfolds, the federal government’s handling of the $43 million rebate claims remains shrouded in uncertainty, leaving stakeholders and observers eager for clarity and resolution.