Elon Musk's Tesla Cleared Of Fraud By Canada In $43 Million ZEV Rebates Case: Report

Benzinga
2025.07.11 09:24
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Transport Canada cleared Tesla of fraud in the $43 million ZEV rebate case after a probe into over 8,563 claims filed in a single weekend. Despite the clearance, Tesla will be excluded from future iZEV programs due to U.S. tariffs and geopolitical tensions. Tesla's sales in Canada have plummeted, with an 87% drop in Quebec, and double-digit declines in Europe. The company faces criticism over CEO Elon Musk's political activities and has announced an upcoming shareholder meeting amid investor concerns.

Transport Canada, the apex regulatory body in Canada that oversees transport regulations in the country, cleared Tesla Inc. TSLA of any wrongdoing in Canada's Incentives for Zero Emission Vehicles (iZEV) rebate program.

What Happened: The agency said it was clearing the EV giant of fraud after launching a probe following over 8,563 rebate claims filed by four Tesla stores in Canada in a single weekend in January 2025, Drivetesla Canada reported on Friday.

The rebates were worth over $43.2 million, which was almost half of the remaining $71.8 million budget, the report says. Tesla had claimed the timeframe was a result of backlogged deliveries and said that the rules of the program said post-delivery submissions of the rebate claims were lawful.

Questions were first raised when the four stores, including an outlet in Quebec that filed over 4,000 claims in a single day, spanned over 88.7% of the total claims, the report suggests.

Tesla, however, will still be excluded from any future iZEV program due to U.S. tariffs as well as "geopolitical tensions" with CEO Elon Musk, the report outlined.

Why It Matters: The news comes as Tesla sales have been dwindling in Canada, with researchers suggesting that the figures have "almost reached zero." Tesla's sales in Quebec fell by over 87%, according to data released by Quebec's SAAQ.

Tesla's sales also experienced double-digit declines in Europe, with sales in Denmark and Sweden down more than 60% in the two Scandinavian countries.

Elsewhere, Tesla has been under fire from experts like Gerber-Kawasaki's co-founder Ross Gerber, for Musk's political activities with the "America Party" as well as dwindling sales.

Recently, Tesla announced it will hold its annual shareholder meeting after pressure from major investors, who expressed concerns about Musk's politics and rising tensions with President Donald Trump.

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