Tesla Sales Plunge 85-90% in Quebec Amid Incentive Cuts, Tariffs, Investigation

Tesla's vehicle registrations in Quebec plummeted by approximately 85-90% in the first quarter of 2025, with only around 524 new Tesla vehicles registered compared to over 5,000 in the previous quarter. This steep decline occurred despite strong overall demand for electric vehicles in Quebec and parallels similar sales slumps in Europe. Several factors contributed to Tesla's sales collapse, including the freezing and removal of Tesla from federal and provincial EV rebate programs amid a probe into rebate application surges, the imposition of 25% tariffs on U.S.-made EVs by Canada in response to U.S. tariffs, and reputational damage linked to CEO Elon Musk's political affiliations and support for former President Donald Trump. Industry experts note that while Musk's political involvement has impacted Tesla's image, tariff and incentive changes are significant contributors to the decline. Quebec's EV market also saw a broader decrease in registrations by 65%, indicating that Tesla is not alone in facing challenges during this period. These combined factors have severely affected Tesla's position in Canada's largest EV market, with concerns that sales may worsen in subsequent quarters.