09-05-2025
Elon Musk close to filing a class action lawsuit against Canada; here's the reason and why Mark Carney could be on the back foot
Tesla is in conflict with the Canadian government and has threatened legal action against Canada. The dispute is over the Incentives for Zero-Emission Vehicles program. Canada froze Tesla's access, blocking millions in tax credits. Tesla filed many rebate claims quickly. Some claims seemed questionable. Tesla insists it followed the rules. It demands immediate payouts.
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Tesla Threatens Lawsuit Against Canada Over Freeze on Tax Credits
What Does Tesla Want from the Canadian Government?
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Tesla is reportedly threatening to file a lawsuit against the Canadian government after a freeze on the Incentives for Zero-Emission Vehicles (iZEV) program blocked Tesla from receiving tax credits worth up to $30 million, as per a report. The freeze was implemented in January, and the company claims it was unfairly excluded from the program, according to freeze followed Tesla's filing of massive rebate claims for iZEV, worth more than 8,600 claims valued at $30.9 million, as per the report. The claims were all filed in 72 hours, with some from a single Quebec City Tesla showroom, which claimed to have sold 4,000 vehicles in one weekend, according to March, Canadian Transport Minister Chrystia Freeland said that Tesla specifically would be prohibited from accessing future rebates under the iZEV program, as per the report. The move was considered to be in response to the United States president Donald Trump's tariffs on Canada, according to the report. Futurism also reported that she ordered her office to ban Tesla from eligibility for future tax credit programs so long as "illegitimate and illegal US tariffs are imposed against Canada."According to the Toronto Star, Tesla has insisted that the tax credit freeze was "inappropriate," because "Tesla Canada has been fully compliant with its participation in the program," quoted EV maker has demanded iZEV payouts start "in the immediate term" for those rebates filed before the January cutoff, even though they are considered to be fudged, as per Tesla filed over 8,600 rebate claims in just 72 hours for the iZEV program, with some claims coming from a Quebec showroom that reported selling 4,000 vehicles over a single Canadian government froze Tesla's access to the iZEV program, blocking the company from receiving tax credits worth up to $30 million, as per Futurism.
