By the government's order, British Columbia has officially announced the cessation of subsidies and rebates for Tesla electric vehicles and associated charging stations. This significant decision marks another chapter within the provincial government’s move to prioritize Canadian goods over those produced elsewhere, particularly amid increasing tensions from U.S. tariffs.
The announcement was made public on March 12, 2025, with the B.C. government outlining its new direction. "We are making this change to preference Canadian goods in our rebate programs going forward and to exclude, where practicable, U.S. produced goods," stated officials from the provincial government. Tesla products have now been excluded from rebates granted by both the CleanBC initiative and BC Hydro’s rebate offerings.
The repercussions of this move target not just Tesla, but also Elon Musk, the billionaire CEO closely tied to outgoing U.S. President Donald Trump, whose administration has recently imposed tariffs on Canadian goods. B.C. Energy Minister Adrian Dix firmly stated, "I thought they [Tesla products] shouldn't be made available on a public subsidy program right now. I don't think anyone in British Columbia needs to be told why, and I think most people would support their removal from the list."
Musk's relationship with Canada, ironically, is multifaceted. While he holds Canadian citizenship and has often spent time there, his disdainful remarks about Canada have drawn ire. He once declared via social media, "Canada is not a real country," igniting widespread backlash. This divergence has manifested itself with growing skepticism among Canadians, especially considering Musk’s recent ridicule of Prime Minister Justin Trudeau and attributes labeled as undermining Canadian sovereignty.
Public reaction has been considerable. A petition to revoke Musk’s Canadian citizenship, citing his actions against the national interest, has rapidly garnered hundreds of thousands of signatures, reflecting widespread discontent. Many Canadians now oppose the notion of taxpayer funds being allocated to support Musk's enterprises. Premier David Eby emphasized this sentiment by stating, "I think British Columbians heard $10,000 of taxpayer money going to Elon Musk, they'd want to throw up, so we removed them from the program."
Before this significant policy shift, British Columbia’s rebates could cover up to 50% of the costs associated with purchasing and installing Tesla home chargers, which can amount to as much as $10,000 per installation. Buyers who had received pre-approval for these financial incentives prior to March 12, 2025, will still be eligible for the rebates, allowing for some buyers to benefit from the previous scheme.
The rationale for these regulatory changes stems from tariffs levied by the U.S. government, which has seen 25% on Canadian goods, alongside 10% tariffs on Canadian energy since March 4, 2025. Even though these tariffs were briefly suspended shortly thereafter, businesses remain wary as reinstatement discussions loom.
It's not solely British Columbia being wary of Musk's influence. Ontario previously terminated a lucrative contract worth C$100 million with Musk's company, Starlink, due to similar sentiments against perceived national threats. Musk has arrived at the crux of controversy, not just for his business practices but for the questionable ethics tied to claims of exploiting the rebate system. Reports suggested multiple Canadian Tesla dealerships engaged illicitly with the rebates meant to incentivize clean energy alternatives.
These issues gradually coalesce with Tesla facing backlash within the U.S. relating to Musk's association with Trump. Numerous users condemned Musk's influence on the electric vehicle market as unfavorable largely due to his political leanings. Following the recent announcement of rebate cessation, Tesla's stock saw fluctuations with drops of approximately 2.99%, closing at $240.68 last Thursday, and representing greater than 36% decrease year-to-date as investor sentiments sour.
Elon Musk aptly reacted to the unexpected development by labeling it as "crazy," expressing disbelief on social media. He even considered retaliatory measures against Canada, jokingly examining the possibility of restricting Canadian access to his SpaceX and Starlink services. Such remarks only amplify the discourse around the dissolution of his public favorable relations with the countries he has long held business interests within.
Moving forward, more tariffs on Canada are highly anticipated, as President Trump has hinted at impending changes aimed at increasing economic tensions. With these developments, how all parties navigate this pivoting atmosphere remains to be seen as consumers and producers undertake new positions amid the changing trade landscapes.
The relationship between Tesla, Canada, and Musk now teeters on the edge, with ramifications for electric vehicle users, industry stakeholders, and the overarching domestic and international market dynamics. The situation poses significant questions for both nations moving forward as they navigate economic relations under increasingly strained circumstances.