Interest in Tesla has taken a dramatic nosedive among Canadian electric vehicle (EV) shoppers, according to the latest J.D. Power 2025 Canada Electric Vehicle Consideration (EVC) Study. The survey, which polled 3,979 prospective new car buyers this spring, found that only 13% of likely EV shoppers would consider buying a Tesla—a drop from 29% just one year ago.
This 55% year-over-year decline has pushed Tesla down to eighth place in brand consideration, its lowest position since the study began four years ago.
Despite Tesla’s decline, other brands have seen modest gains. Hyundai now leads all manufacturers in EV consideration with 36% of respondents including it in their shortlist. Kia, Toyota, Ford, and Chevrolet, which round out the new top five, also gained traction as consumers shifted toward more traditional and affordable brands.
Meanwhile, overall interest in EVs among Canadian shoppers remains relatively flat. According to J.D. Power, twenty-eight percent said they were likely to consider an EV for their next vehicle, down slightly from 29% in 2024 and well below the 59% consideration rate in the United States.
Of those hesitant to go electric, top concerns included affordability, range anxiety, and lack of charging infrastructure.
The study also found there is growing skepticism about Canada’s zero-emission vehicle (ZEV) targets. The federal government has set a goal of 100% zero-emission new vehicle sales by 2035, but 75% of survey respondents said they are not confident that target will be met.
The decline in Tesla’s appeal may be tied to a perfect storm of factors, including political controversy due to CEO Elon Musk’s ties to President Donald Trump, rising vehicle prices, and the removal of provincial and federal EV incentives. One particularly damaging moment came in February, when Musk posted on X that “Canada is not a real country”—a comment he later deleted.
Perhaps on the biggest factors outside of Musk’s influence was the federal government pausing its popular $5,000 iZEV rebate earlier this year. The study showed 42% of potential EV buyers said the removal of the rebate negatively affected their purchase plans. The federal government has pledged to reinstate the program, but no timeline has been announced.
