Elon Musk Threatens to Sue Canada After Tesla Was Caught Doing Something Incredibly Sketchy

Joe Wilkins

Thu, May 8, 2025, 1:02 PM 3 min read

It's not a large clip to beryllium an lawyer for Tesla.

In caller months, the floundering electrical conveyance institution has been bombarded with dozens of lawsuits, similar the California class-action that alleges Tesla's manipulated odometers to get retired of warranties, oregon the Australian class-action that alleges the institution misled consumers with claims astir its alleged "Full Self-Driving" software.

As if that weren't capable for the company's lawyers, Tesla execs are dishing retired their fair share of ineligible threats successful return. Following a caller frost successful Canadian EV taxation credits, Tesla is present threatening to sue the Canadian government, alleging the determination cuts the institution disconnected from $30 million successful taxation credits.

The full shooting lucifer kicked disconnected backmost successful January, erstwhile Canada abruptly stopped issuing rebates nether its Incentives for Zero-Emission Vehicles programme (iZEV), sending car dealers and manufacturers into a frenzy. The programme was viewed arsenic a large boost for EV sales, offering Canadian consumers up to $3,590 successful rebates for qualifying fully-electric and hybrid vehicles.

Later successful March, Musk's Tesla came nether fire aft placing suspicious claims for tens of millions of dollars worthy of iZEV rebates close earlier the January freeze.

Most of those claims came from conscionable 4 dealers, with a azygous Tesla showroom successful Quebec City claiming it had sold immoderate 4,000 eligible vehicles implicit a single weekend. Altogether, Tesla filed implicit 8,600 claims successful 72 hours, astatine a outgo of C$43 cardinal (US$30.9 million), oregon astir 60 percent of the remaining iZEV budget.

A fewer weeks later, Canadian Transport Minister Chrystia Freeland announced a frost connected iZEV payments for Tesla specifically, a determination seen arsenic retaliation for Donald Trump's unprecedented tariff threats. In addition, she directed her bureau to prohibition the EV elephantine from eligibility for aboriginal taxation recognition programs truthful agelong arsenic "illegitimate and amerciable US tariffs are imposed against Canada."

Now, Tesla is claiming that the taxation recognition frost was "inappropriate," due to the fact that "Tesla Canada has been afloat compliant with its information successful the program," according to the Toronto Star. The EV mammoth is demanding iZEV payouts commencement "in the contiguous term" for those rebates filed earlier the January cutoff, contempt the information that they were almost surely fudged.

If a ineligible conflict kicks disconnected successful full, Tesla volition person to successfully reason that it was allowed to record rebate claims after vehicles were delivered — a favoritism which the Canadian authorities has evidently flip-flopped connected successful the past.

While Canada is astir apt harmless to footwear backmost and fto Tesla rotation its wheels, the EV institution needs each the assistance it tin get. As income vessel to grounds lows around the world, authorities handouts successful the signifier of EV taxation credits — Tesla's breadstuff and food — person go each but critical if the company wants immoderate anticipation of surviving.