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Canada freezes support payments for Tesla models and excludes the company from future programs.

Canada freezes support payments for Tesla models and excludes the company from future programs.

By Super Admin

Published: June 1, 2025

The Canadian government announced a freeze on all financial support payments related to purchases of "Tesla" vehicles, and the exclusion of the company from participating in future federal incentive programs, in a surprising move coming amid an escalating dispute between the Department of Transportation and the American electric car manufacturer.

According to the Canadian Department of Transportation, the decision to freeze comes as a result of an internal review that revealed violations related to pricing standards and eligibility for the National Zero-Emission Vehicle (iZEV) program, which offers financial incentives to buyers of up to $5,000 per vehicle.

The government accused "Tesla" of manipulating the pricing structure in order to enable its higher-priced models to qualify for support, by marketing limited-feature versions at low prices on paper, but which are not actually available to customers, which the authorities considered a breach of the program's intent.

For its part, "Tesla" has not issued any official comment on the decision so far, while the action has sparked a wave of controversy among consumers and advocates for the transition to clean energy, some of whom expressed concerns about the impact of the move on electric vehicle sales and Canada’s progress toward its environmental goals.

It is worth noting that "Tesla" was among the main beneficiaries of the program since its launch in 2019, making its exclusion from future grants a significant development in the relationship between the Canadian government and the electric vehicle sector.

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