Tesla Sales Plunge 85% in Québec: What’s Driving the Decline?

Tesla is facing significant headwinds in Canada, with new vehicle registrations in Québec plummeting by 85%. Data reveals a dramatic drop in Tesla sales during the first quarter of 2025, sparking concerns about the company’s performance in the region.

Sharp Decline in Registrations

The numbers tell a stark story. Only 524 new Tesla vehicles were registered in Québec between January and March 2025, a massive decrease from the 5,097 units registered in the last quarter of 2024. This decline is particularly noticeable in popular models like the Model Y, which fell from 3,274 units to a mere 360. The Model 3 also experienced a significant drop, plummeting from 1,786 to just 96 units.

While seasonal variations in auto sales may partially explain the decrease, the scale of the decline raises deeper questions about Tesla’s challenges in the Canadian market.

Echoes of European Struggles

Québec’s situation mirrors similar difficulties Tesla is facing in Europe, where sales have also seen substantial declines. Despite overall demand for electric vehicles remaining strong, Tesla’s struggles suggest that brand-specific issues may be at play.

Rebate Freeze and Trade Tensions Impact Tesla Sales

Several factors could be contributing to Tesla’s woes. The Canadian government has frozen $43 million in Tesla EV rebates amid concerns over potential fraud and the ongoing trade tensions with the U.S.

Transport Minister Chrystia Freeland initiated a review after a sudden surge in rebate applications, raising suspicions of abuse. Additionally, Tesla’s eligibility for future incentives is contingent upon the resolution of President Trump’s tariffs on Canadian goods.

Furthermore, other provinces like British Columbia, Prince Edward Island, and Manitoba have followed suit by removing Tesla from their respective rebate programs.

Political Backlash and Elon Musk’s Involvement

The decline in registrations coincides with growing global backlash against Tesla CEO Elon Musk, particularly in Europe, due to his endorsements of certain political parties.

In North America, Musk’s involvement with the Department of Government Efficiency has triggered protests and vandalism at Tesla dealerships across multiple states.

Musk’s recent decision to step away from DOGE, after a brief stint as a “special government employee,” and his commitment to focusing on his companies may signal a shift in strategy.

Looking Ahead

Tesla’s challenges in Québec highlight the complex interplay of economic policies, trade relations, and political factors affecting the company’s performance. Whether Tesla can rebound in the Canadian market remains to be seen.