Hundreds of thousands of people have signed a petition to revoke Musk’s Canadian citizenship
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Tesla sales have declined significantly in Canada in the last year — approximately 70 per cent between December 2024 and January 2025, according to shop4tesla.com.
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In Canada, at least, plummeting sales are closely tied to a broad drop in electric vehicle (EV) plug-in hybrid electric vehicle (PHEV) sales of 79 per cent during the same period, reports drivetesla.ca. The main culprit has been the pause in federal rebates.
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That’s not to say Canadian response to Elon Musk won’t affect Tesla sales going forward. Here’s what we know about reaction to Musk.
What has happened to Tesla sales in Europe?
Consumer response to Musk’s connection to Donald Trump, as well as his involvement with far-right German party, AfD, during that country’s recent election, have been closely tied to a slump in European Tesla sales, reports The Guardian.
In the U.K. a recent attack aimed at Musk was pointed. A U.K.-based group called “Everyone Hates Elon” took credit for a poster seen in London that also went viral. It depicts a Tesla renamed the “Swasticar” with an image of the tech billionaire doing his infamous Nazi-like salute from Donald Trump’s inauguration rally in January.
How do Canadians feel about Musk?
Here in Canada feeling for Musk may not be as strident, but the sentiment against him is clear. Based on his connection with Trump and the ongoing tensions between Canada and the Trump administration, hundreds of thousands of people have signed a petition to revoke Musk’s Canadian citizenship — a petition that has made headlines in Europe.
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Launched on Feb. 20, it accuses Musk of acting against Canada’s national interest and undermining its sovereignty.
In Canada, citizenship can be revoked only if someone has committed fraud, misrepresented themselves or knowingly hid information on an immigration or citizenship application. Musk was born in South Africa and has Canadian and U.S. citizenship. He acquired Canadian citizenship via his mother, who was born in Saskatchewan.
Musk’s initial response to the petition was posted on X: “Canada is not a real country.” The post was later deleted, reports the BBC.
The petition claims the billionaire “used his wealth and power to influence (Canadian) elections” and “has now become a member of a foreign government that is attempting to erase Canadian sovereignty.”
The petition has been signed by more than 360,000 Canadians, so far, and remains open for signatures until June 20.
The National Post reached out to Tesla for comment, but there has been no response.
How might U.S. tariffs affect Tesla?
Meanwhile in an ironic tariff twist, U.S. tariffs on Chinese-made EVs could affect Tesla’s supply chain and pricing strategy, potentially impacting their competitiveness in the Canadian market.
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Tesla sources many components for its vehicles from China, including critical materials for lithium-ion batteries such as graphite. The 25 per cent U.S. tariff on Chinese goods could increase the cost of these components, potentially raising Tesla’s production costs.
To offset those costs, Tesla may need to increase vehicle prices in Canada, potentially affecting demand.
Meanwhile, Canada already has a 100 per cent tariff on Chinese EVs in step with the U.S. actions. If Canada lifts or reduces that tariff, Tesla could face increased competition from Chinese manufacturers in the Canadian market.
What is happening with the broader EV industry in Canada?
For the moment, however, the main reason for the month-over-month decline in Tesla sales is the discontinuation of government subsidies. The indefinite pause of the federal electric vehicle rebate program has affected all EV manufacturers.
Some provinces — B.C. and Quebec — have also backed out of incentives leading to increases in retail prices. In February 2025, Tesla increased prices for all of its vehicles in Canada, between $4,000 and $9,000 on it’s various models.
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Other EV manufacturers have experienced sales drops. For example, Chevrolet EV sales declined by 65 per cent and Hyundai by 30 per cent in January 2025 compared to December 2024, reports driving.ca.
However, some manufacturers have responded to the subsidy changes by reducing prices. Polestar, for instance, cut prices of new EVs by up to 25 to 30 per cent.
But some manufacturers are reconsidering their EV strategies. The global EV adoption rate is under pressure, leading many manufacturers to pull back on EVs and pursue plug-in hybrids instead. For example, Ford Motor Co. announced it is pushing back EV assembly at its Oakville, Ont., plant until later this decade. Instead, they will produce conventional gasoline-powered pickup trucks.
Lion Electric Co., which has received $100 million in provincial and government support to assemble batteries in Canada for electric school buses and trucks, has filed for bankruptcy in the U.S. and sought creditor protection in Canada.
However, it’s not all doom and gloom. General Motors Co. is producing an electric delivery van called BrightDrop at its plant in Ingersoll, Ontario. And Stellantis has started producing battery-powered EVs and plug-in hybrid EVs at its Windsor assembly plant.
Will government subsidies for EVs be un-paused?
Meanwhile, Ottawa has no concrete plans to reintroduce or modify the rebate program. The program officially paused on Jan. 13, 2025, due to the depletion of available funds. Whether a future government will reintroduce the rebates is anyone’s guess.
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