Nearly six months after abruptly suspending its electric vehicle rebate program, Transport Canada is reopening its claim system so dealerships can recoup rebates they paid out to customers in January, the Star has learned.
It’s money the dealerships were initially left without, after American EV giant Tesla drained the rebate’s funds by submitting an eye-popping number of claims in the program’s final days.
Transport Canada will inform EV dealers of the change at two webinars being held this Friday and next Tuesday, a department official confirmed.
“All eligible claims will be paid out,†said Transport Canada spokesperson Laura Scaffidi.
After the online portal is reopened, any dealers who paid out EV rebates before the program’s suspension will be able to submit claims for reimbursement and will be paid out “in an orderly fashion,†according to Huw Williams, a spokesperson for the Canadian Automobile Dealers Association (CADA), who was briefed by government officials.
In March, the Star broke the story that Tesla claimed $43 million in EV rebates on the last weekend before the Canadian government abruptly shut down its public subsidy program.
The unprecedented surge in claims drew scrutiny because it amounted to selling two EVs a minute, 24 hours a day, for the entire weekend. The revelation also came as Tesla CEO Elon Musk led an effort to radically cut government subsidies in the United States.
Tesla’s claims drained the ’s remaining funds far more quickly than anticipated, leaving more than 200 independent, Canadian-owned dealerships out of pocket for approximately $11 million in rebates they fronted to customers.
After the Star’s stories, Transport Minister Chrystia Freeland announced a freeze in payouts to Tesla, launched a line-by-line audit of its rebate claims and pledged to make whole the dealers who were “stiffed†by the abrupt program closure.
“Tesla had a run on the bank,†said the Canadian Automobile Dealers Association’s Huw Williams,
The webinars represent the beginning of fulfilling that promise, said Williams.
“The Canadian Automobile Dealers fought a six-month-long campaign for dealers to be repaid,†he said. “This has been an $11-million hardship for independent small business and we are enormously grateful to Prime Minister Carney and the new government for the campaign commitment and follow through to pay dealers.â€
Terry Budd, owner of eight car dealerships in the Oakville and Hamilton areas, told the Star in March he was out about $25,000 for rebates he was unable to submit and welcomed the opportunity to get his money back — but stressed that the government still hasn’t explained what happened that final weekend.
“I’d still like to know what happened with Tesla,†he said. “Did they cheat or not?â€
“No one’s come clean on that.â€
When she announced the investigation into Tesla, Freeland also said she would bar the company from all future EV rebate programs as long as U.S. tariffs are in place.
Last month, Environment Minister Julie Dabrusin said she was working on a new EV rebate program, but declined to elaborate on the eligibility details or the timing.
U.S. President Donald Trump and Tesla CEO Elon Musk shown with a Tesla vehicle in Washington.
Andrew Harnik/Getty Images file photo
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