Transport Canada has concluded its investigation into Tesla’s $43.2 million in rebate claims under the Incentives for Zero-Emission Vehicles (iZEV) program, finding no evidence of fraud.
The probe, launched after Tesla filed 8,653 claims over a single weekend in January 2025, has cleared the automaker, confirming the submissions were lawful and compliant with program rules.
The investigation was sparked by a surge in Tesla’s rebate filings between January 10 and 12, just hours after Transport Canada announced the iZEV fund was nearing depletion. Four Tesla stores, including one in Quebec City claiming over 4,000 sales, accounted for 88.7% of claims that weekend, totaling $43.2 million—over half the remaining $71.8 million budget.
The volume raised suspicions, with critics questioning how Tesla could deliver so many vehicles in 72 hours, with some calling it physically impossible.
Tesla maintained the claims were for backlogged deliveries, expedited to ensure customers received rebates before the program ended. Fereshteh Zeineddin, Tesla’s head of sales for Canada, emphasized in a March 28 letter that the filings followed program guidelines, which allowed post-delivery submissions despite recommendations for pre-delivery assessments.
Transport Canada’s findings have now corroborated Tesla’s stance, confirming the claims were for eligible vehicles delivered within the program’s timeframe.
Despite the clearance, Tesla will still be excluded from future iZEV programs, U.S. tariffs and geopolitical tensions involving Tesla CEO Elon Musk. This decision has drawn criticism from Tesla, which employs 1,400 Canadians and invests heavily in local R&D. The company expressed frustration over learning of the initial freeze through media reports rather than official channels, highlighting strained communication with the government.
