Tesla’s Quebec Sales Plunge 87% Amid Tariffs and Controversy

In a staggering downturn, Tesla has reported a shocking 87% drop in vehicle sales in Quebec during the first quarter of 2025 compared to the same period last year, delivering only 524 vehicles.

This dramatic decline severely impacts what was once a key market for the electric vehicle (EV) giant, known for its strong adoption rates attributed to government incentives and the availability of cheap hydroelectric power.

The drop in sales has been largely credited to several factors, including a pause in Canadian EV incentive programs and the imposition of new tariffs.

Tesla Faces 87% Sales Plunge in Quebec as EV Market Crumbles

As of April, the Canadian government has enacted a 25% tariff on Tesla’s vehicles, further complicating matters for the already struggling automaker. This confluence of challenges has caused an alarming trend, with overall EV sales in Canada plummeting by 45% in the same quarter.

Adding to Tesla’s woes is the company’s recent controversy over questionable filings for EV incentives worth $42 million CAD. Tesla attempted to attribute these discrepancies to a backlog of unprocessed deliveries, but the damage to the brand has been substantial.

The situation is exacerbated by growing negative perceptions of CEO Elon Musk, fueled by his controversial political statements and support for former President Trump, who has called for Canada’s annexation by the U.S.

With no plans to import more vehicles into Canada in the upcoming quarter, Tesla seems to be navigating rough waters. Although the company has some inventory of the new Model Y, its reliance on this model (with a recent refresh that failed to spark renewed interest) points to larger issues within their lineup.

Critics warn that until the tariff situation is addressed and Tesla repairs its tarnished image, hope for a recovery in the Canadian market remains dim.