Toronto Excludes Tesla Excluded EV Incentives Amid Trade Tensions

Toronto has made a significant decision to exclude Tesla vehicles from its electric vehicle (EV) incentives for taxis and ride-sharing services.

This move, announced by Mayor Olivia Chow on March 17, 2025, is a direct response to ongoing trade tensions with the United States.

As of March 1, Tesla vehicles are no longer eligible for the city's EV incentives, which include reduced licensing and renewal fees until the end of 2029.

The exclusion of Tesla from these incentives is largely symbolic, according to Mayor Chow. She emphasized that the financial impact would not be substantial but noted that the decision sends a clear message regarding the city's stance on trade issues.

Chow also highlighted that Tesla CEO Elon Musk's role as a top adviser to U.S. President Donald Trump was a factor in this decision. The move is seen as a response to Trump's policies, including calls for Canada's annexation and the imposition of tariffs on Canadian goods, which have been met with widespread criticism in Canada.

Toronto continues to promote the adoption of electric vehicles for taxis and ride-sharing services, encouraging drivers to opt for other electric car models.

The city aims to reduce emissions by incentivizing the use of EVs, but it will no longer provide financial support for Tesla vehicles until trade issues with the U.S. are resolved. This decision reflects the broader impact of international trade disputes on local policies and the automotive industry.

As the situation unfolds, it remains to be seen how this decision will affect Tesla's presence in Toronto and whether other Canadian cities will follow suit. The move underscores the complex interplay between trade policies, local governance, and the automotive sector, particularly in the context of electric vehicle adoption.

While Tesla has not yet commented on Toronto's decision, this development could potentially influence future policies regarding U.S.-based companies in Canada.