Key Takeaways
1. Tesla denied claims of manipulating the iZEV rebate system by submitting $43 million in requests just before the deadline.
2. The company stated that the claims were for electric vehicle sales made before the termination announcement, and they did not benefit from government funds.
3. Tesla highlighted that dealerships could sell vehicles at reduced prices by factoring in available incentives for buyers.
4. The automaker expressed dissatisfaction with the rebate payment freeze and the negative media portrayal affecting staff and customers.
5. Ongoing tensions in Canada include criticism of Tesla and recent removal from an auto show due to safety concerns amid a tariff conflict with the U.S.
Tesla has refuted claims that it manipulated the system by hastily submitting a massive number of iZEV rebate requests in Canada just before the deadline. Over a single weekend, the automaker put in claims worth $43 million as the government was concluding the program due to a lack of funds. This action led to an investigation, during which the payouts were put on hold.
Tesla’s Defense
In a letter dated March 28th to Transport Canada, Tesla sought to demonstrate that it acted within legal boundaries. Fereshteh Zeineddin, the company’s Director of Sales & Service for Canada, clarified that Tesla simply submitted claims for a backlog of electric vehicle sales that took place prior to the government’s announcement of the program’s termination. The automaker did not gain from any funds provided by the government, as the reduction was applied to the customers, who received the rebate ahead of time.
Clarification on Incentives
The letter also noted that dealerships and manufacturers were permitted to let qualified buyers pay for vehicles at a price lower than the total cost by factoring in the incentives they were eligible for.
Tesla expressed its displeasure at discovering the rebate payment freeze through the news. It also voiced concerns over the negative treatment its staff and customers encountered due to unfavorable media coverage. The automaker suggested it might pursue legal action if the government fails to follow through on its promise to release the withheld funds.
Ongoing Tensions in Canada
Tesla has faced criticism in Canada, especially as the nation is involved in a tariff conflict with the United States. Recently, the company was removed from a well-known auto show due to safety issues.
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