Tesla is in the headlines in Canada yet again. Just weeks after a suspect sales bump prompted an investigation into probable misuse of a government rebate program, Toronto is pulling Tesla from its hire car incentive system. The city’s mayor says hire car drivers will “have to find a different kind of car.” 

Weeks after Tesla locations in Canada tried to snap up government EV rebates, Toronto is blocking the brand

Toronto has announced that it will not provide incentives for the electric car marque. However, the move doesn’t target consumers indiscriminately. Instead, the Canadian city will pull the incentives it has in place for EV ride shares, hire cars, and taxis. Toronto’s incentive program promotes EVs for use as hire cars by reducing licensing and renewal fees. Of course, the exclusion isn’t for every make and model of EV, just Tesla-branded vehicles.

“The vehicles for hire, like taxis, will have to find a different kind of car,” Toronto Mayor Olivia Chow told Reuters. Mayor Chow was, of course, referring to the exclusion of Teslas from the incentive program in the Canadian city. “There are other electric cars they could purchase.”

The move follows rising tensions between Canada and US President Donald Trump. Trump’s close alliance with controversial Tesla CEO Elon Musk has painted something of a crosshair on the brand’s vehicles. Now, proposed tariffs on the close US trade partner have prompted reprisals, including excluding the American EVs from the government incentive program. “We have certainly said that if you want to buy a Tesla, go ahead, but don’t count on taxpayer money to subsidize it,” Mayor Chow said.

It’s not the first time Tesla has been at the center of controversy in Canada. Recently, the transport minister launched an investigation into a suspicious sales bump over three days in January. Four Tesla locations reported 8,653 vehicle sales over the long weekend. As wild as it sounds, one of the locations reported selling over 1,200 EVs in one day.

The sales bump claimed millions of dollars from Canada’s government reimbursement iZEV rebate program. Unfortunately, the maneuver left dealerships holding the bill for tens of millions in EV rebates. After the dealerships voiced their outrage over the move, the Canadian transport minister announced she would open an investigation into the sales figures and rebate claims.