Toronto has ceased offering financial incentives for Tesla vehicles used as taxis or ride-sharing services, citing ongoing trade disputes with the United States.
Mayor Olivia Chow announced that, effective March 1, Tesla models no longer qualify for the city’s program that reduces licensing and renewal fees for electric vehicles, a measure in place until the end of 2029 to promote sustainable transportation.
In a comment made to Reuters, Mayor Chow shared, “The vehicles for hire, like taxis, will have to find a different kind of car…There are other electric cars they could purchase.”
Chow attributed this decision to recent actions by U.S. President Donald Trump, including the imposition of tariffs on Canadian products and calls for Canada’s annexation, which have strained bilateral relations.
She emphasized that while individuals are free to purchase Tesla vehicles, they should not expect taxpayer-funded subsidies: “We have certainly said that if you want to buy a Tesla, go ahead, but don’t count on taxpayer money to subsidize it.”
The exclusion of Tesla from these incentives will remain until trade issues with the U.S. are resolved. Mayor Chow noted that the financial impact of this move is minimal and serves more as a symbolic response to the current trade tensions.
