Over a three-day period, the Elon Musk-owned company recorded more than 8,600 sales at four locations across Canada. These abnormally high sales resulted in $43 million (nearly ₹375 crore) in government rebates being given to the company.

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Surprisingly, a single location in Toronto saw over 1,200 sales on a single day, January 11, accounting for $4 million in rebates.

Industry analysts are now concerned and are raising questions over whether the vehicle registrations were legitimate or whether Tesla knew of a then-impending pause to the EV subsidy program.

The Canadian Automobile Dealers Association has urged Transport Canada to investigate, citing potential misuse of the rebate system.

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The federal EV rebate program, facilitating over 500,000 electric vehicle purchases since its inception, was paused on January 13, 72 hours after the government signaled its potential suspension. Officials are now reviewing the Tesla sales data to determine if any irregularities occurred during the program’s final days.

Tesla sales falling globally

The company's sales in Germany fell by 76% in February, data showed, while its sales in Netherlands fell 24% and in Sweden, they fell by 42%. Meanwhile, Tesla recorded a 48% dip in sales in both Norway and Denmark, 45% drop in France, 55% drop in Italy, 10% in Spain and 53% in Portugal, official data showed.

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Outside Europe, Australia reported a 66% drop in Tesla registrations in February while the brand's worldwide sales of cars produced in China were down 49% due to intense pressure from Chinese rivals.