Prince Edward Island (PEI) has become the latest province in Canada to remove Tesla from its electric vehicle (EV) rebate program. The move comes less than a week after Manitoba and Nova Scotia announced similar plans, and is being made in response to the threat of U.S. tariffs.
According to an announcement on the government’s website on Tuesday, Tesla vehicles are no longer eligible for the rebate effective March 25, 2025. Any purchases made before this date will still be eligible to claim a rebate. In its announcement, PEI urged residents to purchase from a local dealership.
“We need to focus our net zero funding on what matters most to Islanders,” said Environment, Energy and Climate Action Minister Gilles Arsenault. “I encourage anyone looking at purchasing an electric vehicle to consider purchasing from a dealership with a local presence here in PEI or in the Maritimes.”
Under the previous rules of PEI’s EV rebate program, both new and used Tesla Model 3 and Model Y vehicles were eligible for the rebate.
Last week both Manitoba and Nova Scotia announced Tesla vehicles were no longer eligible for their respective EV rebate programs. In providing their rationale for the removal of Tesla, Manitoba’s Finance Minister said it was in response to “Donald Trump creating a historic threat to our economy.” A Nova Scotia MLA was little more direct, calling out CEO Elon Musk for aligning himself with Trump. “The owner of Tesla happens to have aligned himself with a man who is waging economic war on our country, and this is a small way to take a stand against that.”
Also on Tuesday, Canada’s new Transport Minister Chrystia Freeland announced Tesla would be excluded from all future federal EV rebate programs so long as U.S. tariffs are in place.
