Tesla in trouble after Canada’s movement: Musk didn’t expect this

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Published On: March 20, 2025 at 11:50 AM
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Tesla has been in the news lately following a controversial decision from one of Canada’s provinces. The major electric car company has been making headlines in recent months, and not just because of their highly anticipated new Model Y release. With CEO Elon Musk joining the Trump Administration in an advisory role through the Department of Governmental Efficiency (DOGE), the company has received its fair share of spotlight.

Tensions between the US and Canada over tariffs

The US has been making waves across the globe recently with their decision to start implementing steep tariffs for foreign products, even from their closet trade partners. Since running his second presidential campaign, President Trump has been planning to implement 25% tariffs on neighboring countries Mexico and Canada. These tariffs went into effect from the beginning of February, with energy imports from Canada getting a 10% tariff.

According to White House officials, the desicion to implement such tariffs is a move made to stop the influx of illegal aliens into the US as well as illegal drugs entering the country. “Illegal aliens” refers to a foreign national who is living without official authorization in a country of which they are not a citizen. The drug crisis in the US is specifically referring to the illegal trade of fentanyl, which is considered a national emergency under the International Emergency Economic Powers Act (IEEPA).

Canadian province targets Tesla

Amidst the ongoing trade war between the US and Canada, Canadian province British Columbia has made the decision to remove Tesla vehicles from the province’s electric rebate policy in an effort to continue to “preference Canadian goods”. Last year, Tesla sold 46,000 vehicles to Canadian customers, a number which accounts for 2.5% of total Tesla sales worldwide.

British Columbia Premier David Eby said the following in a statement:

The Government of B.C. and BC Hydro are taking action to preference Canadian goods in our rebate programs going forward and to exclude, where practicable, U.S. produced goods.

As of March 12, 2025, Tesla products (electric vehicle chargers, energy storage batteries and inverters) are not eligible for CleanBC and BC Hydro rebates. If you purchased or have received pre-approval for your Tesla product before March 12, 2025, it can still qualify for rebates and will be processed as normal.

In response to the move, CEO Elon Musk responded to on social media platform X, formerly known as Twitter, citing the move as “crazy” and suggesting that Canada should be cutoff from accessing SpaceX and Starlink. SpaceX is Musk’s space technological company while Starlink is a satellite internet system developed by SpaceX which provides global broad brand internet coverage.

Musk continues to make moves in DOGE

While Musk has been famous for his innovation and futuristic technologies in the renewable energy sphere with his electric vehicles as well as developments in space exploration technology, he has recently been playing a significant role in US government. Employed by the Trump Administration in an advisory role through DOGE, his role for the administration is to suggest ways in which the government can cut costs and limit unnecessary spending.

Musk’s involvement in US politics has been met with controversy and opposing opinions. While supporters of the Trump administration praise his involvement, specifically following his major administration changes implemented at X, others worry what it might mean for a an unelected official ton now have access to sensitive citizen information. This comes with news of Musk being involved in guiding the future of Social Security and having access to beneficiaries information, as the administration deals with determining what the future of Social Security is amidst concerns of the fund becoming depleted by the beginning of 2030.