A new report by The Toronto Star alleges that Tesla dealerships manipulated the Canadian government system to claim tens of millions of dollars in electric vehicle rebates for cars some say it may have never sold.
What happened?
According to the Star, Tesla cheated more than 200 auto dealers out of an estimated $10 million in reimbursements from the government for EV rebates.
The four Tesla showrooms in Canada reportedly claimed more than 8,600 EV sales in the final 72 hours before the rebate program was set to run out of funds. They filed for $43.1 million Canadian ($30 million USD) in rebates — more than 50% of the $71.8 million in public subsidies left.
That left independently owned dealerships to foot the bill for 2,295 EV rebates given to customers, per the Canadian Automobile Dealers Association.
CADA spokesperson Huw Williams told the Star that one dealership lost nearly $700,000 because it could not file paperwork before the program shut down. Another dealer was out of pocket $410,000 and considered layoffs to recoup some of the money.
Some dealers who were able to submit rebates before the online claims portal closed still haven't been reimbursed more than a month later.
"Tesla had a run on the bank," Williams said. "Somehow, Tesla gamed the system. What we can't figure out is how this could have happened without setting off alarm bells."
Why is this concerning?
If dealerships are out millions of dollars, it will affect their ability to buy new cars, causing them to potentially raise prices on existing inventory to cover the losses. With fewer electric vehicles on the lots, customers may be deterred from buying one, especially with no rebates offered.
"The deal's done and we're shy that money," Terry Budd, who owns eight car dealerships in Canada, told the Star. "Nobody can tell us whether we're going to be paid or not."
The incident also doesn't reflect well on Tesla, which has been in the spotlight recently for numerous issues, including plummeting vehicle sales and stock prices, failed safety inspections on Model 3s, and major problems with its Autopilot and Full Self-Driving features. And that is on top of CEO Elon Musk's controversial political activities.
TCD Picks » Upway Spotlight
💡Upway makes it easy to find discounts of up to 60% on premium e-bike brands
|
Do you think Tesla's vehicles have lost some of their appeal?
Click your choice to see results and speak your mind. |
Definitely 👍 The questioned EV rebate grab may further impact sales and discourage the continued adoption of eco-friendly EVs, leading to more planet-warming pollution from gas-powered cars.
What's being done about EV rebates in Canada?
According to the Star, the federal government is investigating the incentive filings.
"I am disappointed," Transport Minister Anita Anand said. "This report is unacceptable and I am asking the department that is responsible for administering this program to provide me with detailed and complete information."
However, Transport Canada, which oversees the rebate program, said it's unclear if Tesla did anything wrong. Electrek reported that the company told Transport Canada the rebate cash grab is a "standard process," and the incentives were for backlogged applications — though the way Williams and dealers like Budd tell it, that isn't entirely able to explain the dire financials that may bankrupt some independent small businesses.
As far as EV rebates, CBC said some provinces and territories still offer them despite the federal program ending.
If you live in the United States, you can claim the $7,500 EV tax credit with the purchase of select models of Teslas and other electric vehicles that meet certain American-assembled criteria.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
