Tesla Canada is currently facing serious allegations, which include the accusation that the company manipulated the iZEV incentive program. In an open letter to Transport Canada, Tesla Canada defends its approach – emphasizing that all submitted iZEV grant claims are completely compliant and lawful.
Background of the iZEV Program
The iZEV Program (Incentives for Zero-Emission Vehicles) is intended to support the purchase of electric vehicles in Canada by providing reimbursements to dealers and manufacturers who advance the grants to customers. Recently, Tesla came under criticism when iZEV grant claims amounting to $43 million were allegedly submitted over a weekend. This unusual increase led to allegations that Tesla wanted to “exploit” the system, which ultimately led to a halt in payments and an ongoing investigation by authorities.
Tesla's Clear Statement
In a letter dated March 28, 2025, addressed to Transport Canada and signed by Fereshteh Zeineddin, the head of sales and service in Canada, Tesla makes it clear:
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Compliant and Transparent:
All submitted iZEV grant claims are based on vehicle sales that were lawful and conducted in accordance with the program specifications. -
After Notification from Authorities:
Tesla only learned indirectly through media reports about the payment failure, which led to unnecessary public criticism. -
Suggestions for Program Design:
As early as 2021 and 2024, Tesla Canada had proposed measures to the federal government to make the iZEV program more transparent and gradual – proposals that were not implemented.
Significance for Tesla Canada
Tesla Canada emphasizes that the company is heavily invested in Canada:
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Job Creation and Innovation:
Tesla Canada employs over 1,400 people and is actively involved in the development of advanced battery technology in Ontario as well as research in Nova Scotia, British Columbia, and other provinces. -
Together for Sustainability:
Tesla has also worked closely with Parks Canada to install EV charging stations at national parks and historic sites – a testament to the commitment to the Canadian community. -
Legal Actions:
Should the payment default not be resolved in the short term, Tesla Canada reserves the right to take legal action to reach a fair conclusion.
Conclusion
Tesla Canada vigorously defends itself against the allegations of manipulating the iZEV program. The company emphasizes that all submitted claims are based on legitimate sales and that the iZEV program was designed as a reimbursement model from the start. With the open letter and the proposals presented, Tesla Canada hopes to improve communication with the authorities and ultimately reach a fair solution. For customers and employees, it is clear: Tesla Canada operates transparently and in accordance with the applicable guidelines – and focuses on long-term sustainability and innovation throughout Canada.
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