In January, four Tesla dealerships in Canada claimed to have sold 8,653 vehicles over a single weekend, raising questions about the validity of these sales as the Canadian government seeks to investigate and ensure no fraudulent claims were made for millions in subsidies.
Canada Questions Tesla's Unbelievable Weekend Sales Claims
Canada Questions Tesla's Unbelievable Weekend Sales Claims
Four Tesla-owned dealerships reported an astonishing spike in sales, prompting scrutiny and investigation into their claims that could cost the Canadian government millions in subsidies.
As Tesla encounters declining sales in Canada, the company recently generated headlines with extraordinary claims made by its dealership network. Four Tesla-owned shops reported to the Canadian government that they successfully sold 8,653 cars in just three days during January—a staggering figure that, if validated, would entitle them to 43 million Canadian dollars (approximately $30 million) in government subsidies under an expiring program.
This unexpected surge in sales has sparked skepticism from Canadian officials, particularly given the reported circumstances. It suggests these dealers would have needed to sell cars at an incredible pace: about two vehicles every minute for a continuous 72-hour period from January 10-12.
Following the spike in reported sales, new Prime Minister Mark Carney and Transport Minister Chrystia Freeland decided to freeze these subsidy payments pending further investigation. Freeland emphasized that no payments would be issued until her department could ensure the accuracy of the claims made by Tesla's dealerships.
While the subsidy program has now closed, with the original end date scheduled for March 31, Freeland hinted at political motivations for her scrutiny, criticizing the imposition of U.S. tariffs on Canadian imports under the previous administration.
In the meantime, the swift funding claims have reportedly drained resources from the Canadian government’s rebate program. The Canadian Automobile Dealers Association has voiced concerns that 225 competing dealers from other brands are now unable to claim about 10 million Canadian dollars due to Tesla's unprecedented sales figure, leaving many facing financial strain.
As investigations unfold, the outcome could have substantial implications, not only for Tesla but for the broader landscape of competition among automotive dealers in Canada.
