Canada Freezes $43M in Tesla Subsidies Amid Trade Tensions

Canada has suspended all rebate payments for Tesla vehicles and barred the company from future electric vehicle subsidy programs due to concerns over the validity of recent rebate claims. Transport Minister Chrystia Freeland announced that payments will remain frozen until a thorough investigation is completed, citing a spike in rebate applications shortly before the program ended. This decision is viewed as a response to ongoing trade tensions, particularly the 25% tariffs imposed by the U.S. on Canadian goods, and will keep Tesla ineligible for rebates until these tariffs are lifted. Tesla's sales in Canada have already plummeted 70% from December to January, further exacerbated by competition in key markets like China and Europe. The situation reflects broader challenges for Tesla amid rising scrutiny and backlash related to its association with President Trump. The company has yet to comment on the recent developments.