In a surprising move that has sent ripples through the EV market, British Columbia (BC), Canada’s third-largest province, has officially cut government rebates for Tesla Inc. charging stations. This decision marks a significant stride in the ongoing trade tensions between Canada and the United States, particularly following actions taken by former President Donald Trump.

Effective March 12, Tesla vehicle chargers, batteries, and inverters will no longer qualify for the enticing rebates previously offered by BC Hydro, the province’s power utility. This shift is part of a broader initiative by the BC government to prioritize Canadian-manufactured goods over American imports amidst a climate of trade rivalry.

In a public announcement, BC Premier David Eby explicitly stated that the decision is a targeted response to Elon Musk, Tesla's CEO and a prominent figure in US politics. “This is specifically about Tesla because of Elon Musk,” Eby declared. “If British Columbians were aware that taxpayer money, up to C$10,000, was being funneled to Musk, there would be outrage, so we opted to remove them from the program.”

The province's rebates had previously covered as much as 50% of the cost involved in purchasing and installing residential chargers, making EV adoption more affordable for many residents. However, Eby noted that Tesla vehicles themselves were already ineligible for the electric vehicle rebates due to their high price tags.

Despite the robust performance of Tesla in the past, the company has recently faced challenges. Its shares have plummeted by approximately 40% in 2025, reflecting dwindling sales in European markets. With the Canadian government's policy shifts, it remains uncertain how Tesla will maneuver to regain its foothold amidst increasing competition and regulatory hurdles.

Furthermore, this decision comes on the heels of escalating economic tensions between Canada and the US, as Canada seeks to retaliate against aggressive trade practices initiated by the previous Trump administration. Analysts suggest that BC’s action is a shot across the bow in what may be a prolonged trade skirmish, potentially signaling more measures to come as provinces look to protect their local industries.

As Tesla grapples with these challenges in Canada, industry experts are watching closely to see how this will impact its operations and consumer perception. Will this move by British Columbia serve as a precedent for other provinces? Only time will tell.