Tesla Getting Wiped Out From Canada's Biggest Province As Sales Plunge By 87%

Tesla’s reputation as the EV leader has taken a serious hit in Canada, especially in Quebec, the country's biggest EV market. In the first quarter of 2025, Tesla’s sales in the province plunged by a staggering 87%, dropping from over 4,000 vehicles a year ago to just 524 units, according to data from Quebec’s vehicle authority, SAAQ.

Here’s a breakdown of what’s happening and why it matters, even for EV watchers here in Australia.

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Quebec: Tesla’s EV Stronghold No More

Quebec has long been the EV capital of Canada, thanks to a mix of generous government incentives, cheap hydro-powered electricity, and a community that’s long embraced electric driving.

Naturally, Tesla once thrived there. But that success has evaporated in early 2025. Not only have sales collapsed, but Tesla has also stopped importing new vehicles into the province entirely, a move that points to more than just a bad quarter.

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What Triggered the Collapse?

A few key factors have collided to create Tesla’s nosedive in Quebec:

• Incentive pause: Both provincial and federal EV rebates were temporarily paused, slowing down sales across all brands. The broader EV market fell 45% in Q1, but Tesla’s decline was almost double that.
• Controversy over $42 million in incentives: Tesla faced public scrutiny after it submitted a wave of delayed rebate claims, raising eyebrows and damaging trust.
• Political backlash: CEO Elon Musk’s vocal support for Donald Trump. Bizarre comments about Canada being annexed by the US hasn’t gone down well with Canadian consumers.

The combination of financial policy shifts and public relations missteps has created what looks like a brand collapse in a once-loyal market.

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Tariffs and Price Hikes Make Things Worse

To make matters more difficult, Canada introduced a 25% tariff on American vehicles in April as part of a tit-for-tat response to US trade measures. That pushed prices higher overnight, making already-expensive EVs even less appealing to budget-conscious buyers.

Tesla’s already aging lineup, dominated by the Model Y, hasn’t helped. The mild refresh in early 2024 didn’t offer enough to re-ignite interest, and the newer Cybertruck has yet to gain serious traction.

Sources say Tesla may not ship more vehicles to Canada in Q2, pointing to continued low demand.

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Zecar’s Take

This isn’t just a Canadian problem. It’s a warning sign for Tesla in mature EV markets where buyers expect more than just early innovation.

Quebec is what Australia might look like in a few years: high EV adoption, strong incentives, and consumers who want value, reliability, and trust in the brands they support. If Tesla can’t hold on in a market like Quebec, it raises questions about how it’ll perform in similar environments globally.

If Musk doesn’t pivot soon, Tesla could find itself losing ground in more regions including Australia, where the EV market is heating up fast.