Tesla Canada Defends $43 Million EV Rebate Filings, Cites Backlogged Claims

Tesla filed 8,653 EV rebate claims in final days of Canada’s federal incentive program.
Company claims submissions were backlogged filings, not new or fabricated transactions.
$43M in rebates remain frozen while Transport Canada investigates filing surge.

Tesla Canada has defended its submission of over 8,600 electric vehicle rebate applications in the final days of Canada’s federal EV incentive program, stating that the filings were backlogged and submitted in accordance with program rules. Late last month, Transport Canada decided to freeze $43 million in reimbursements pending an investigation.

The federal program, which provided consumers with a $5,000 rebate on qualifying zero-emission vehicles, ended earlier this year after funds were depleted faster than anticipated. In January, the government notified automakers and dealers that the incentive budget would be exhausted imminently, leaving only a short window to file claims.

Between January 10 and 12, Tesla submitted an unusually high number of rebate requests. According to reports, 8,669 applications were filed during that period. One Quebec City location reportedly submitted 4,000 claims, and an Etobicoke location filed 2,528—far exceeding their typical volume.

The Canadian Auto Dealers Association (CADA), historically a thorn in Tesla’s side, raised concerns that the American automaker may have unfairly depleted the remaining funding pool. The group said its member dealerships lost out on an estimated $10 million in rebates, representing approximately 2,295 vehicles. CADA alleged that Tesla “gamed the system” and prevented other dealerships from receiving the final round of funding.

In a letter dated March 28 and obtained by Electrek, Fereshteh Zeineddin, Tesla’s director of sales and service in Canada, said the company’s submissions were routine and complied with the program’s structure. The rebate is applied at the point of sale as a discount to the customer, and dealerships are reimbursed by the federal government later.

Zeineddin stated that Tesla has historically filed rebate claims in batches, including for past sales, and that Transport Canada previously accepted such practices. However, the letter did not specify how many of the 8,653 submissions were for backdated transactions.

Tesla expressed surprise at the government’s handling of the situation, stating it was “shocked” to learn of the investigation through media reports rather than directly from Transport Canada.

Tesla also cited reputational damage as a consequence of the investigation. The company stated that the controversy has resulted in increased verbal harassment and negative public sentiment among employees.