Whatever happened to Freeland's promise to shut Tesla out of EV rebates?
Tesla was not on the initial list of 35 eligible vehicles in February. It adjusted its Canadian pricing in March to come in under the cap, and the official list, last updated March 10, 2026, now includes the 2026 Tesla Model Y RWD at the full $5,000.
Transport Canada paid Tesla $907,500 in federal electric vehicle rebates for the period April 1 to June 30, 2026, according to the department's proactive disclosure of grants, more than a year after Chrystia Freeland said Tesla would be shut out of future rebate programs while American tariffs stayed in place.
The record lists the recipient as "TESLA MOTORS CANADA INC - LAWRENCE" in North York, Ontario, with the postal code of Tesla's Lawrence Avenue East store. The agreement, numbered EVAP 1008291, states: "The total funding provided in this reporting period represents 182 incentives provided by the recipient," or about about $4,986 per vehicle.
The record does not say which models or sale dates are covered.
In March 2025, Freeland, then transport minister, froze $43 million in rebate payments to Tesla after a surge of claims at the end of the old iZEV (Incentives for Zero-Emission Vehicles) program, and directed the department to revise eligibility for future iZEV programs so that Tesla vehicles would not be eligible "as long as the 'illegitimate and illegal U.S. tariffs are imposed against Canada.'"
In July 2025, Transport Canada concluded the claims were valid and the freeze was lifted, with reports saying Tesla would still be excluded from future iZEV programs.
The replacement program, the Electric Vehicle Affordability Program, took effect February 16, 2026 and states a vehicle must "be made in Canada or in countries that have a free-trade agreement with Canada" and have a final transaction value of up to $50,000, with no cap for Canadian-made vehicles.
Nothing in the published rules names Tesla.
Tesla was not on the initial list of 35 eligible vehicles in February. It adjusted its Canadian pricing in March to come in under the cap, and the official list, last updated March 10, 2026, now includes the 2026 Tesla Model Y RWD at the full $5,000.
The tariffs have not gone away. The law firm Dorsey wrote in August that "The United States began imposing 50% tariffs on Canadian goods into the United States on August 22, 2026," and Osler lists the 25 per cent U.S. auto tariff as in place since April 2025.
No public statement by a minister on whether Freeland's exclusion still applies could be found. Tesla qualified by meeting the published criteria.
Freeland's condition was no rebates for Tesla while the tariffs lasted, but the tariffs are still there, and the rebates are flowing again.
Sheila Gunn Reid
Chief Reporter
Sheila Gunn Reid is the Editor-in-Chief, Alberta Bureau Chief, member of the board of directors, and host of The Gunn Show at Rebel News. Sheila also serves as President of the Independent Press Gallery of Canada. A mother of three and longtime conservative activist, Sheila is the author of bestselling books, including her most recent release, Independence Blueprint: What Alberta Can Learn From Quebec.
https://mybook.to/sheila
