Canadian governmental authorities are stepping up measures taking aim at Elon Musk and Tesla. Nova Scotia, Manitoba, and British Columbia have officially removed Tesla vehicles from their electric vehicle (EV) purchase incentive programs.
A political sanction against Musk
British Columbia was the first to exclude Tesla, as early as March 13. Its premier, David Eby, stated that “When taxpayers learn that $10,000 is going directly to Elon Musk, it makes them want to vomit” - a shockingly direct statement that illustrates the rising tensions between the two countries.
The decision in Nova Scotia comes as Musk has brought to bear financial and other support to Donald Trump and adopted controversial positions on various political issues. The province's Progressive Conservative government allied itself with opposition parties (NDP and Liberals) to vote for the exclusion of all Tesla models from the provincial program.
Consumers residing in Nova Scotia lose a discount of $2,000 to $3,000 CAD, depending on the model.
Manitoba's program grants up to $4,000 to buyers of an EV with an MSRP not greater than $70,000 – that’s gone for Tesla buyers. The province also took another targeted measure, banning subsidies for all electric vehicles assembled in China.
Saskatchewan doubles annual EV tax
Meanwhile, on the prairies, the wind is blowing in a different direction. Saskatchewan announced fee increases for buyers of EVs. The provincial government is doubling the annual registration fee for electric vehicles, from $150 to $300, as of June 1st. The official reason? The new revenues will be used to modernize the road network, something owners of ICE vehicles already contribute to when paying at the gas pump.
Regarding Tesla, other provinces could potentially follow suit. The question arises in particular for Quebec, which has yet to remove Tesla from its Roulez vert program. The Quebec program grants up to $4,000 in incentives to eligible EV buyers, though it was temporarily suspended at the start of this year and is set to be substantially reduced as it is gradually phased out.
It’s clear that Tesla is becoming a prime target for Canadian governments in a broader power struggle between Canada and the U.S. administration. It remains to be seen whether other provinces will align with the trend.