A last-minute scramble for federal electric vehicle (EV) rebates has led to a historic spike in Tesla sales, as Canadians rushed to purchase a car before funding for the iZEV program was depleted. Records from Transport Canada reveal that in just 72 hours, four Tesla stores across the country reported an astounding 8,600 sales, securing over $43 million in rebates.
The surge came after the federal government announced in January that the $5,000 iZEV rebate program was nearly out of money. Buyers reacted swiftly, with Tesla experiencing an unprecedented spike in purchases across the country, and specifically in British Columbia, Ontario, and Quebec.
Rebates attributed to the Tesla store in Quebec City alone reached nearly $20 million, with more than 4,000 Teslas selling in Quebec City in a single weekend. Add in sales from Tesla Etobicoke, Tesla Lawrence Ave, and Tesla Vancouver, and more than 8,600 Teslas rebates were attributed to those four stores in the final weekend of the program, according to data compiled by Toronto Star.
The iZEV program had been a key driver of EV adoption in Canada since its launch in 2019. It offered rebates of up to $5,000 for qualifying electric vehicles, making EV ownership more accessible to Canadian consumers. However, with a looming federal election, the program was allowed to expire without a renewal plan.
The urgency to claim a rebate before the program was officially out of money greatly benefited Tesla thanks to its direct-to-consumer sales model, allowing it to process orders faster than traditional dealerships.
As for the future of the iZEV program, Transport Canada has said it is “paused” rather than permanently canceled, there is currently no clear indication of when or if additional funding will be allocated after the federal election.
