Categories: EV News

Toronto dumps Tesla from grants program as Canadians react to White House trade war

Published by
Joshua S. Hill & Giles Parkinson

The Canadian city of Toronto has announced it will exclude Tesla electric vehicles from its zero emissions grant program for taxi and limousine owners, in direct retaliation against Elon Musk for what the city describes as the “senseless” attacks against Canada from the new Trump administration.

A motion put forward by Toronto mayor Olivia Chow was passed by the council last week that excludes Tesla EVs involved in the city’s vehicle-for-hire sector from subsidising their permits and licenses.

Musk has emerged as a polarising figure, in the US, Canada and across the world, due to his role in slashing employee numbers, seeking to eliminate certain departments and agencies, and for amplifying Trump’s tariff threats and far right political agendas on his X platform.

Doug Ford, the conservative governor of Ontario, of which Toronto is the capital, earlier this month threatened to cancel a $C100 million contract with Musk’s Starlink in response to the tariffs threat, saying he “won’t do business with anyone hell bent on destroying” the Canadian economy.

Tesla EV sales plunged in January in many countries, falling by more than 60 per cent across Europe – more than 75 per cent in Spain -m and by 33 per cent in Australia. Musk supporters insist it is because customers are waiting for the new Model Y, others say it is because of a consumer backlash against Musk himself.

However, Wired reports that prominent members of Tesla fan and merchandise clubs in Europe have ditched their Tesla EVs and swapped them for another vehicle. See: Elon Musk’s toxicity could spell disaster for Tesla. The Driven understands that some in Australia are considering doing the same.

The Toronto grant program is designed to incentivise taxi and limousine owners to purchase zero-emission vehicles before 2030, and offers a reduction in both licensing and renewal fees until the end of 2029.

The larger goal of the Program is to support the vehicle-for-hire sector to meet the city council requirement that all such vehicles are to be zero-emission beginning in 2030.

The motion to exclude Tesla passed with a vote of 20 to 4, although some on the council queried why other American EV manufacturers were allowed to remain in the grant program.

According to various local media outlets, Chow specifically described the motion as a way to target Elon Musk and his influence within the Trump administration and Donald Trump’s “senseless” attacks over trade with Canada.

It will be largely symbolic however, as there are only nine Tesla EVs registered in the program. But such an action would have unimaginable just a few years ago when Tesla was seen as the darling of the EV market, and the favoured option for buyers, particularly in north America and Australia, where it has dominated sales.

“For now, the best we can do is send a message to the White House,” Chow said, according to various local media reports.

Toronto’s deputy mayor, Mike Colle, also announced that he plans to push for the closure of a local Tesla store, describing Musk as “the second most powerful man in the Trump administration who is hell-bent on destroying the Canadian economy.”

View Comments

  • Yes. Just the beginning. Don't assume that the rest of the world isn't powerful. If Trump wants to push the EU too far then we'll see how powerful he looks when the Dutch refuse to let ASML to sell to USA and Taiwan...and maybe sells to China instead. LOL

  • Pretty stupid though, Elon Musk has nothing to do with the tariffs - he's more interested in DOGE and cutting Government expenditure.
    This knee-jerk reaction won't hurt Trump at all and only serves to deny access to better vehicles for the services.
    But then again, Teslas aren't really the best vehicles for fleets because most of their best features require you to be able to control the vehicle with the Tesla App.

    • Are you naive? The USA is now a fully fledged plutocracy. It's all about enriching themselves and their mates. This is a shot across the bow of the man-baby Trump that two can play stupid games.
      ps: who cares what Telsa does? the Chinese have won the EV future.

    • Do you have inside info from the White House or personally from Musk about what they discuss? From widespread news reports, Musk has a very close and influential relationship, in spite of not being elected or appointed and confirmed by the Senate. If I was Canadian or Mexican I'd be having a good hard look at a lot of US origin products, and the behaviour of their owners regarding Trump's behaviour to my country. Stopping use of X is another likely step.

      • Just been in Canada for a month. The people there already are boycotting US products. Sharing lists of alternatives. Booing when the US national anthem is being played. More. They are most definitely "not happy, Jan!!!"

    • Hardly new though, is it Cecil? Now that Betty Windsor has carked it, we will fulfill our destiny to become the prince albert in the anus of the great american empire.

  • Hysterical and hysterically hilarious response from Toronto deputy mayor. Only 9 Tesla EVs may be affected. WOW!!!!

    Like I said, hysterically hilarious response.

  • Ahhh the Elon fan boys are enraged. Musk is little more than a snake oil salesman that promises a lot but delivers little. What happened to the Roadster and the vacuum tunnel train and going to Mars. Elon promised these years ago but as with everything he promises is just smoke and mirrors

    • There are no governors in Canada, except for the Govenor ot the Bank of Canada. Really, it's just not hard to get this sort of thing correct.

      • Each of the 10 Canadian provinces has a lieutenant governor. He or she is appointed by the governor general,

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