After Europe, now Tesla's sales crash in Canada's Quebec, Elon Musk's company sold only 524 cars in 3 months

Tesla's bumpy ride is no longer just in Europe, the EV maker now has a steep sales decline in Canada, in the province of Québec, in the first quarter of 2025, as per a report.

Tesla Model Y and Model 3 Take the Hardest Hit in Québec

Just 524 new Teslas were registered in Québec during the first three months of 2025, as per data from the vehicle registration authority in Québec, reported Business Insider. That's a huge drop from the 5,097 vehicles registered in the final three months of 2024 alone, a decline of more than 85%, according to the report.

Tesla's top-selling Model Y suffered the worst blow as its sales fell to a mere 360 units from 3,274 units in the final quarter of 2024, as per Business Insider. During the same period, the Model 3, Tesla's lowest-priced car, also fell even more dramatically by 94% to just 96 registrations from 1,786, according to the report.

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Seasonal Dip or Sign of Something Bigger?

While car sales historically are lower in the beginning of the year, this type of dip is much greater than is normal, and it occurs as Tesla deals with the same issue overseas, including in Europe, where its sales declined by nearly 50% in April, even as demand for electric cars overall rose, as per Business Insider.

Rebate Freeze May Be Fueling the Drop

One of the reasons for Tesla's woes in Canada could be an unexpected shutdown of federal EV rebates, because in March, the Canadian government suspended $43 million in rebates, and each individual claim is now under review, reported Business Insider.

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The freeze came after a sudden spike in Tesla rebate requests, doubling from 300 to almost 5,800 per day, that led the government to conduct a formal review, according to the report.

Canada's Transport Minister Chrystia Freeland had mentioned that the EV maker would remain ineligible for future incentives as long as US president Donald Trump's 25% tariffs on Canadian goods are in place, reported Business Insider.

FAQs

Is Tesla struggling only in Canada?
No, Tesla is also seeing steep sales drops in Europe, even though demand for EVs continues to grow there.

Why did Canadian Tesla sales fall so much?
One big reason is a federal rebate freeze, which halted $43 million in EV incentives.