Elon Musk’s words and actions since the beginning of the year, notably those that came as part of the Trump administration, have had a well-publicized impact on Tesla sales around the world.
But the impact might be greatest right here in Canada. Since the beginning of 2025, Tesla vehicle registrations have dropped here by a staggering 67 percent.
Between January and the end of June 2025, just over 9,000 Teslas were registered in Canada. That compares most unfavourably with the 26,000 sales notched for the same period in 2024, according to figures from S&P Global Mobility.
There are several factors that have led to that fall from grace. The withdrawal of federal EV incentives, as well as the pause in Quebec and reduced incentives now available there, certainly had an effect. But the general consensus is that those obstacles are largely trumped by Canadian buyers’ strong aversion to the company’s CEO. For one, it seems Musk’s statement that “Canada is not a real country” was heard loud and clear.
| Photo: D.Boshouwers
Recall as well the fluctuations in prices of several Tesla models since January 1, notably the increases for popular models like the Model 3 and Model Y. That, of course, was before the latest slash in price on the Y.
Then there are the 25 percent retaliatory tariffs imposed by Canada in response to U.S. duties slapped on Canadian-built vehicles, which have also affected prices.
In short, it’s a perfect storm to depress sales.
Many are watching now to see whether the trend continues. Elon Musk shouldn’t expect miracles, though. A recent J.D. Power study showed that only 13 percent of Canadian consumers looking for an electric vehicle would consider buying a Tesla. That’s down from 29 percent in 2024.
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