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Canada discontinues iZEV investigation against Tesla: $43 million released

Canada discontinues iZEV investigation against Tesla: $43 million released

Transport Canada has concluded Tesla's iZEV Rebate Investigation and released the previously frozen $43.2 million in funding. After an intensive review, the agency found no evidence of fraud and confirmed that all 8,653 rebate applications were compliant.

Background of the iZEV Investigation

Between January 10 and 12, 2025, Tesla submitted 88.7% of all applications in four Canadian stores, including Québec City – $43.2 million of the remaining $71.8 million budget. The massive submissions raised doubts: critics considered a delivery volume in 72 hours impossible.

Tesla's Explanation and Transport Canada's Verdict

Tesla pointed out that these were retroactive submissions for vehicles delivered on time – permissible according to iZEV rules. Transport Canada has now confirmed that all applications were lawful and lifted the freeze.

Consequences for Tesla's Program Participation

Although released, Tesla remains excluded from future iZEV programs. The move hits the company hard, which employs 1,400 employees in Canada and invests heavily in local R&D. Tesla criticized learning about the investigation from media first.

Outlook

Following the conclusion of the investigation, Tesla hopes for better communication with Canadian authorities and urges a return to future funding programs. For Canadian Tesla buyers, the release means they can now receive their full rebate.

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