Tesla has secured an additional $4.2 million in electric vehicle (EV) rebates from the Canadian government following the reopening of the iZEV program's online portal this summer. This reopening was intended to assist independent Canadian dealers who were adversely affected when Tesla rapidly claimed most of the available funds, leading to an early closure of the subsidy program.

New data released on Monday indicates that Tesla claimed over 20 percent of the $20.4 million in rebates filed during this special period. The government had previously paused the rebate program after an unprecedented surge in claims from Tesla, which utilized an automated system to submit more than 8,600 rebate applications in just three days. This equated to a rate of over two claims per minute, around the clock.

The situation drew significant public attention and criticism when it was revealed that Tesla had filed a backlog of claims for sales dating back as far as two years. In response to the backlash, then-Transport Minister Chrystia Freeland halted payouts pending an audit, which ultimately cleared Tesla of any wrongdoing. Freeland also promised to compensate approximately 200 car dealers who were left without funds when the program was abruptly closed.

Huw Williams, a spokesperson for the Canadian Automobile Dealers Association, commented on the irony of the situation, stating, "In trying to restore fairness to independent Canadian auto dealers, the government provided yet another cash influx to Tesla."

Since the launch of the iZEV program in 2019, Tesla has claimed more than $717 million, accounting for 27 percent of the total $2.6 billion disbursed in EV rebates. Hyundai follows as the second-highest claimant with $392 million. Internal documents from Transport Canada reveal that as Tesla's market share increased, it drew significant funding from the program.

When the government announced in January that the rebate program was running low on funds, Tesla quickly claimed over 89 percent of the remaining budget before the portal was closed. This coincided with a period of heightened scrutiny, particularly as Tesla's CEO, Elon Musk, was publicly discussing controversial topics alongside U.S. President Donald Trump.

The government initially planned to exclude Tesla from claiming additional subsidies when the portal reopened. However, the latest data shows that this plan was abandoned, allowing Tesla to submit more claims. Transport Canada confirmed that the only modification made to the program was a limit of 25 claims per dealership per day.

EV sales in Canada have seen a decline since the federal rebate was halted in January, dropping from 18.9 percent of the new car market in December 2024 to 9.7 percent in March 2025. This decline coincided with the end of provincial rebates in British Columbia and Quebec, which had previously reduced the cost of some EVs by up to $12,000.

As competition in the EV market has increased, Tesla's market share has plummeted from nearly 50 percent in 2022 to less than 10 percent. This trend has accelerated in early 2025, driven by the cessation of rebates and Musk's public statements. Williams remarked, "Tesla is a company surviving on government subsidies. Our dealers are locally owned, family-run businesses in local communities."

The Canadian government has remained tight-lipped regarding the distribution of public funds to Tesla, with internal documents indicating concerns about public perception. The documents noted that failing to reimburse eligible claims could lead to criticism from Tesla vehicle purchasers and create challenges in justifying the lack of reimbursement for other dealerships affected by the program's abrupt closure.