Canucks freeze Tesla rebates and bans the company from the program.

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Earlier this month, Tesla sparked outrage among Canadian auto dealers after selling an astonishing 8,653 cars in just three days across four stores, which equates to roughly two cars per minute for three straight days, including the hours the stores were closed. The company then filed for C$43.1 million (US$30M) in rebates.

That all unfolded right before Canada ran out of cash in its EV rebate fund. The combination of factors led officials to wonder if Tesla gamed the system somehow. Now, the Canadian government is freezing payments to the EV maker led by US presidential adviser Elon Musk, while it sorts everything out. It didn’t stop there either.

More: Tesla Accused Of Gaming Canada’s EV Rebate Program After 4 Stores Sold 2 Cars Per Minute Wiping Out $43M In Grants

Everyone suspected that, as funds in the EV rebate program dwindled, sales would rise a bit. That would be great for Tesla in Canada, especially since it was struggling to move cars early this year. But selling 8,653 cars in just three days? That’s not just a boost, it’s a bit of a red flag. Something felt off.

The Freeze and a Tariff Twist

On Tuesday, Canada’s Transport Minister Chrystia Freeland made the call to freeze C$43 million (equal to $30M at current exchange rates) worth of payments. “As soon as I became Transport Minister, I asked the department to stop all payments for Tesla vehicles in order to fully examine each claim individually and determine whether all are eligible and valid,” Freeland said in a statement to the Toronto Star. “No payments will be made until we are confident that the claims are valid.”

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But Freeland didn’t stop there.

“I also directed my department to change the eligibility criteria for future iZEV programs to ensure that Tesla vehicles will not be eligible for incentives so long as the illegitimate and illegal US tariffs are imposed against Canada” she added.

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