Manitoba government boots Tesla from EV rebate program as part of budget's 'elbows up' commitment

CBC

21-03-2025

Social Sharing
The Manitoba government is fighting back in the ongoing trade war with the United States by ending its provincial parks pass contract with a Texas-based company and kicking electric vehicles made by Elon Musk's company Tesla out of its rebate program.
Those moves were part of Thursday's $25.9-billion provincial budget, in which the NDP government also pledged an additional $500,000 to its export support program to help Manitoba businesses diversify their sales beyond the United States.
The changes are part of "Trump-proofing our economy," said Finance Minister Adrien Sala, who announced in his budget speech that a provincial rebate will no longer be available for people who purchase a Tesla or any electric vehicles manufactured in China.
"It's part of our government's commitment to be elbows up," Sala told reporters during a budget briefing Thursday.
"[U.S. President] Donald Trump is creating a historic threat to our economy."
Last week, Trump hit Canada with 25 per cent tariffs on steel and aluminum. He has said he plans to implement additional levies on April 2.
The Manitoba budget announced Thursday also included a worst-case scenario plan the province can implement if the tariffs continue, which included hundreds of millions of dollars of additional money to support the agriculture sector and to help businesses, among other measures.
Budget targets Tesla and U.S. companies in midst of trade war
2 hours ago
Duration 2:01
The threat of tariffs loomed over today's budget speech. So much so that it contains 'a contingency tariff budget.' It projects a $600M revenue shortfall if the U.S. goes ahead with its tariff threats. And hundreds of millions of additional spending to support people and businesses affected.
As part of its response, Manitoba won't continue its contract with Aspira, a Texas-based firm that was contracted in 2020 to sell passes online for Manitoba provincial parks. That contract is set to end in April and won't be renewed, the government said Thursday.
While it searches for a Canadian vendor, the province will make entry to all provincial parks free this year, beginning April 1, which it estimates will mean forfeiting almost $3 million in revenue.
According to the budget, over $5 million has gone to the Texas firm since it began administering the park passes.
Meanwhile, while the government is pledging $14.8 million to continue its electric vehicle rebate program this year, Teslas and Chinese EVs will be excluded.
Manitobans can currently get a $2,500 rebate on the purchase of a used EV or plug-in hybrid, and $4,000 for a new vehicle. As of January, the province had already paid out almost $10 million in rebate s since the program was introduced last July.
To be eligible, vehicles must be purchased or leased from Manitoba dealerships, with a maximum manufacturer's price of $70,000. Currently, there are six Tesla models that are eligible for the rebate. None of the vehicles on the province's current list are from Chinese manufacturers.
The province hasn't said when the change to the program will take effect.
The retaliation against the car company owned by Musk — a close ally of Trump who also heads up the newly created Department of Government Efficiency — follows similar moves in other provinces. In Ontario, Toronto city council has approved a change that temporarily makes newly manufactured Teslas ineligible for grant funding from the city's zero emission vehicle for hire program.
And B.C. Hydro announced last week that it is excluding Tesla products from its electric vehicle charger rebate program in response to U.S. tariffs.
'Government is doing the right thing': Chamber CEO
But University of Winnipeg economist Philippe Cyrenne questioned the wisdom of targeting Tesla and China by excluding their vehicles from the provincial EV rebate. Politicizing the response to tariffs "usually doesn't work out well," he said.
"It's not clear why Manitoba is following suit" with Democrats in the U.S. on the pushback against Musk, he told CBC Thursday.
"Six months ago we were celebrating people who bought a Tesla," Cyrenne said, but now, they have become "persona non grata."
Tesla did not immediately respond to a request for comment.
Lauren Stone, the finance critic for the Opposition Progressive Conservatives, said she supports buying Canadian, but thinks the government shouldn't control what people purchase.
"I am not a fan of the government interfering in Manitobans' purchasing decisions," she said. "I think we should be encouraging local and expanding our export markets, but that should be up to Manitobans and their pocketbooks."
Winnipeg Chamber of Commerce CEO Loren Remillard said the move against Chinese EVs is appropriate, given a 100 per cent levy on Canadian canola oil and meal, plus a 25 per cent duty on seafood and pork enacted by China this week.
"We are in a global trade dispute right now, and I think it behooves Manitoba and all governments across Canada to make sure we are Canada-first," he said.