Tesla’s Sales Fall 87% In Quebec As Its Market Gets Wiped Out

Tesla’s share of Canada’s EV market is decreasing, and Quebec—its main provincial market—saw sales drop by 87% in Q1 2025 compared to the same time last year. Le Devoir reports that the Société d’assurance automobile du Québec (SAAQ) recorded only 524 Tesla deliveries in the province during the quarter.

The province of Quebec has seen a lot of EV adoption because of its generous incentives, cheap hydroelectricity, and people who are eager to use them. In this environment, Tesla did well, and Quebec became a key location for the brand in North America. However, the market is almost gone now.

The end of EV incentive programs at both the provincial and federal levels caused the sudden drop. At first, the delay made buyers more eager, but Tesla later became involved in controversy when it was said to have filed thousands of suspicious rebate claims worth $42 million CAD. Tesla claimed the filings were just late, but the harm had already been done.

Elon Musk’s backing of Donald Trump, who has said controversial things about Canada, has also damaged Tesla’s image. Combined with aging vehicle models and a lackluster refresh of the Model Y, Tesla’s brand is faltering in a market that once championed it.

The situation became worse when the Canadian government put a 25% tariff on Tesla vehicles in April as a response to Trump’s trade war. As a result, Tesla raised prices and stopped importing cars in Q2 2025 because demand had dropped sharply.

Even though the EV market in Canada fell by 45% last quarter, Tesla’s bigger drop suggests there are other problems besides incentives. Because of low stock, higher prices, and less public support, Tesla’s future in Quebec is now less certain.