Quebec sales of Tesla vehicles saw a downturn, potentially marking a temporary slump; however, hints of a rebound may be evident in the near future.
In the first quarter of 2025, a significant drop was observed in Tesla registrations in Quebec, with only 524 new Teslas registered - a decrease of 90% compared to the previous quarter. This steep decline can primarily be attributed to the loss of federal and provincial electric vehicle (EV) incentives and the introduction of new tariffs on U.S.-made EVs like Tesla, Lucid, and Rivian.
The federal iZEV rebate program ended on March 31, 2025, causing a sharp decline in consumer demand for Tesla vehicles. Moreover, Quebec paused its provincial EV rebates from February to April in the same year. These rebates, which used to save buyers up to $12,000, were a significant factor in Tesla's popularity.
Quebec had a surge of EV purchases in 2024 due to a CAD$7,000 incentive for Zero-Emission Vehicles (ZEVs) that dropped to CAD$4,000 on January 1, 2025. Consumers rushed to buy before the incentive cut, leading to a spike before the plunge in early 2025. The provincial mandate for 100% ZEV sales by 2035 drove strong adoption, but the decline in incentives hit demand hard.
Nationally, BEV registrations dropped by 48.3% in January 2025 compared to December 2024, with Quebec being the largest contributor to this decline. Tesla sales in Canada dropped 67% in the first half of 2025, with registrations falling to 9,000 units from over 26,000 in the previous period.
Despite these challenges, Quebec’s ambitious policies and mandates supporting EV adoption remain in place, and the province still accounts for 60% of ZEV registrations nationwide, indicating long-term structural support. Experts expect sales of Tesla to recover in the next quarter now that rebates are back.
Anne Picard, a loyal Tesla customer in Dorval, has owned two Teslas over eight years and would not consider any other brand due to the reliability of the brand. Philippe Bergeron Bélanger, who owns an electric Audi, considers Tesla for his top-three list, despite its polarizing social status.
The market for Tesla in Canada remains strong among loyal customers and EV advocates. Many experts believe Tesla still has a strong future in Canada, with improvements in affordability, range, and charging infrastructure. However, the continued presence of tariffs may pose a challenge for the company's growth in the Canadian market.
[1] CBC News. (2025). Tesla sales plummet in Quebec after EV incentives end. [online] Available at: https://www.cbc.ca/news/canada/montreal/tesla-sales-quebec-ev-incentives-1.6147495 [2] Electric Mobility Canada. (2025). Q1 2025 EV Registrations Report. [online] Available at: https://www.electricmobilitycanada.ca/wp-content/uploads/2025/05/Q1-2025-EV-Registrations-Report.pdf [3] Global News. (2025). New tariffs on U.S.-made electric vehicles taking effect in Canada. [online] Available at: https://globalnews.ca/news/8628496/us-made-electric-vehicles-tariffs-canada/ [4] CTV News. (2025). Tesla sales plummet in Canada amidst dropped incentives and new tariffs. [online] Available at: https://www.ctvnews.ca/autos/tesla-sales-plummet-in-canada-amidst-dropped-incentives-and-new-tariffs-1.5984575 [5] Financial Post. (2025). Canada's vehicle sales show improvement in mid-2025. [online] Available at: https://financialpost.com/commodities/autos/canadas-vehicle-sales-show-improvement-in-mid-2025
- The end of the federal iZEV rebate program and the pause of Quebec's provincial EV rebates have had a significant impact on the finance and automotive industry, particularly on Tesla's sales in Canada, as these incentives were major factors driving consumer demand for electric vehicles.
- Despite the decline in sales, Quebec's ambitious policies supporting the transportation and technology sectors, including the mandate for 100% Zero-Emission Vehicle sales by 2035, indicate a long-term structural support for electric vehicles, potentially leading to a recovery in Tesla sales in the upcoming quarter due to the return of rebates.
