A public Canadian threat to retaliate to U.S. tariffs by imposing 100% tariffs on Tesla vehicles was made by two politicians with prime ministerial hopes, not the federal government, contrary to suggestions on social media.

According to a report from the Toronto Star, four Tesla locations claimed to have sold 8,653 electric vehicles in the last three days of the rebate. They filed for $43.1 million in rebates — more than half of the $71.8 million in remaining funds.

Tesla sales have declined significantly in Canada in the last year — approximately 70 per cent between December 2024 and January 2025, according to shop4tesla.com . In Canada, at least, plummeting sales are closely tied to a broad drop in electric vehicle (EV) plug-in hybrid electric vehicle (PHEV) sales of 79 per cent during the same period,

While these sales are a win for Elon Musk’s company, they left rival brands without access to the same EV credits. Tesla’s $43.1 million in rebates consumed more than half of the remaining funds for EV subsidies. By the time other dealers attempted to claim their rebates, the money had run out. And there were plenty of them.

The Toronto Star reported that four Tesla outlets filed for 8,653 EV sales in just 72 hours, worth $43.1 million in rebates. This ultimately led to the portal’s shutdown, leaving hundreds of dealerships without a way to recoup the rebates they had offered to buyers at the point of sale.

As Canada braces for a potential leadership change, one candidate says she will go after Tesla with 100% tariffs if elected.

A Canadian candidate for Prime Minister has proposed implementing a 100% tariff on Tesla vehicles in response to US

Trump tariffs on Mexico, Canada and China will hit automakers to varying degrees, with one of the biggest wildcards being how much it hurts Elon Musk and Tesla.

Elon Musk’s wealth has plunged $121 billion since its December peak after Tesla stock experienced one of its worst days this year, Forbes reported. At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

Trump granted a one month exemption on tariffs on imports from Mexico and Canada for U.S. automakers. But threats to Tesla still loom.