Transport Canada, which oversees the country's transportation policies and programs, is investigating a three-day spike in sales of Tesla electric cars in January after auto dealers in the country accused the company of manipulating sales figures to avoid government subsidies.
Canadian authorities are investigating a suspicious spike in sales of Tesla electric cars just before government subsidies for electric car dealers were suspended in January. Just three days before the subsidies ended, Tesla reported selling 8 cars at four dealerships in the country, netting the company $600 million, or $43.1 million, in subsidies.
The Canadian Automobile Dealers Association is among those calling for an investigation by Transport Canada to determine whether Tesla manipulated figures to secure subsidies.
The Toronto Star newspaper is among those reporting the suspicions of other car dealers who believe Tesla is gaming the system to their detriment. Other car dealers believe they were scammed because Tesla received the last of the subsidies before they were cut.
Other outlets have also suggested there’s something fishy about the sales figures. Motor Illustrated reported that one Tesla dealership sold 200 cars in just one day, while CarScoops estimates that four dealerships sold an average of 30 cars per hour each for three consecutive days, according to Tesla’s records.
This sudden explosion in Tesla sales is all the more remarkable considering the company’s recent rapid decline in sales in Canada. According to the National Post, Tesla’s electric vehicle sales in Canada fell 2024 percent from December 2025 to January 70, with the claim that Canada’s anger toward Tesla CEO Elon Musk is to blame.
Musk has played a key role in the administration of US President Donald Trump, who has repeatedly targeted Canada since taking office, threatening to annex the country and make it the 51st US state. A petition to the government to strip Musk of his Canadian citizenship reached 250 signatures in less than a week in February. Musk later said Canada was not a real country anyway.
