Torontonians are reacting to Toronto Mayor Olivia Chow’s announcement that the city will not be offering Tesla EV financial incentives in response to the trade war.
In an effort to reduce emissions, the city is offering a reduction in licensing and renewal fees to EV drivers until the end of 2029.
“Starting in 2024, under the Zero Emission Grant Program, drivers and owners using ZEV taxicabs and limousines are enjoying a reduction in both licensing fees and renewal fees until the end of 2029. The reduction amount vary every year up to and including 2029,” Shane Gerard, senior communications coordinator at the city, said in a statement to Now Toronto on Wednesday.
On Monday, Chow announced that as part of the city’s response to the tariffs imposed on Canadian goods by U.S. President Donald Trump, Tesla vehicles no longer qualify for the incentives as of Mar. 1.
“We are giving incentives for people to migrate into electric cars. Except we will stop giving incentives, financial incentives, to buy Tesla,” she said.
Tesla has recently received some backlash after CEO Elon Musk became a common figure in the White House as Trump’s senior advisor, following his inauguration in January.
Read More
Chow has also told Reuters that although she believes the measure won’t significantly affect Tesla financially, the cut is a “more symbolic” move.
According to Gerard, there are currently 21 taxi and limousine drivers who have benefitted from the program in Toronto, with only nine of them being Tesla drivers.
“Providing licensing fee reductions to the nine taxicab and limousine owners using a Tesla has resulted in forgone revenue of $4,677.20, since the fee reduction program started in 2024,” he said.
Meanwhile, Chow is encouraging Torontonians who wish to get an electric car to look for other brands.
“If you want to buy [a] Tesla, go ahead. But don’t count on taxpayer money to subsidize it,” she said.
Canadians and Americans online have been showing support for the city’s response, pointing out that there are other EV car brands available for those thinking about making the change.
“American here, the sane people in the USA understand and support Canada 🇨🇦 and 🇲🇽. Stay 💪,” a user wrote on TikTok.
“Great decision! There are better EVs. Furthermore Tesla is known to have quality issues,” another user chimed in.
On the other hand, other users pointed out that this response won’t have a big impact on Tesla, and that it could hurt the environment and the city’s plans for more sustainable transportation.
“Canada is Tesla’s smallest market, they don’t care,” another TikToker commented.
“Guess they don’t care about the environment anymore,” another user added.
The City of Toronto is currently working towards achieving zero greenhouse gas emissions related to the vehicle-for-hire industry by 2030. The EV incentive program is part of the city’s efforts to achieve this goal.
“The City of Toronto is committed to working in partnership with businesses, governments, and institutions to take real and measurable action against the climate crisis and to work quickly to create a greener, more resilient and sustainable future,” Gerard said.
