Canada has frozen all rebate payments for Tesla TSLA.O and banned the electric-vehicle maker from future EV rebate programs.

Canada is none too pleased with Tesla. It's not exactly pleased with the US either. Both situations are understandable. In the first case, tensions were already rising because it seems that Canadian Tesla dealers pulled some shady moves to get money out of the country's EV incentive plan.

The nation will scrutinize every EV rebate earmarked for Tesla and won't allow it into future programs as long as tariffs remain in place

Freeland said that all existing payments are frozen pending a full review of each subsidy claim. She also directed the Ministry of Transport to revise eligibility rules for Canada’s iZEV program (Incentives for Zero-Emission Vehicles).

Canada has banned cars made by Elon Musk’s Tesla from future electric vehicle rebate programs as the country engages in a tit-for-tat trade dispute with President Trump, the country’s transport

Tesla rebate claims spiked from 300 to about 5,800 a day in late January, shortly before the Canadian scheme ended, sparking concern of potential abuse.

Tesla is America's electric car juggernaut; a domestic force that helped to push EV adoption all across the globe—something it managed to do by pushing boundaries (and sometimes buttons). Naturally, that means Tesla can find itself in hot water every now and then with regulatory bodies. Its latest upset? The entirety of the Canadian government.

Vehicles built by Elon Musk's Tesla have been vandalised because of his links to Donald Trump and after he said Canada was "not a real country."

Demonstrators descended on Tesla dealerships across the United States and in Europe and Canada on Saturday to protest against the company's CEO Elon Musk. The billionaire entrepreneur and top

Although Tesla produces 100% of its vehicles in the United States at its Texas and California factories, there is truly no 100% “American-made” car — as Musk himself contended Wednesday after the tariffs announcement. “Important to note that Tesla is NOT unscathed here,” Musk posted on X. “The tariff impact on Tesla is still significant.”

Tesla has been barred from all of Canada's electric vehicle rebate policies due to "illegitimate and illegal U.S. tariffs."