Tesla in Free Fall: Sales Plunge 85 Percent in Québec

The Canadian market has long been one of Tesla’s strongholds. But during the first quarter of 2025, that picture changed dramatically. According to data from Québec’s vehicle registration authority, published by Business Insider, only 524 new Teslas were registered in the province between January and March. In comparison, the number was 5,097 in the last quarter of 2024. That corresponds to a staggering 85 percent drop.

The Model Y, Tesla’s best-selling vehicle, saw a nearly 89 percent decline, while the Model 3 fared even worse—falling by 94 percent. It’s a troubling development in a region where Tesla previously held a significant presence in the EV market.

Rebate Freeze and Tariff Walls

Part of the explanation lies in March, when the Canadian government froze 43 million Canadian dollars in EV rebates. The move followed an explosive surge in Tesla-related applications—from 300 to nearly 5,800 per day. Transport Minister Chrystia Freeland announced that Tesla will remain excluded from future incentives as long as U.S. President Donald Trump’s 25 percent tariffs on Canadian goods remain in effect.

Rising Competition

Beyond political headwinds, Tesla faces mounting competition. Newcomers like Vietnam’s VinFast and the U.S.-based Rivian, along with legacy players like Toyota and Ford, are gaining traction with more affordable EV and hybrid models. This puts pressure on Tesla’s brand, already strained by repeated price adjustments and increasing price sensitivity in markets like Québec.

In Europe, the trend is similar: Tesla saw a nearly 50 percent drop in sales in April, despite rising demand for EVs overall. The global trend suggests Tesla must reinvent its market position or risk being left behind in an industry that is evolving at breakneck speed.

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