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Toronto has removed financial incentives for Tesla (NASDAQ: TSLA) taxis and ride-share vehicles due to escalating trade tensions with the U.S., Mayor Olivia Chow announced Monday.
The city supports electric vehicle (EV) adoption by reducing licensing and renewal fees for vehicles for hire until 2029 to lower emissions. However, as of March 1, Tesla vehicles no longer qualify. Chow emphasized that drivers can choose other EV brands.
The move targets Tesla CEO Elon Musk, a key adviser to U.S. President Donald Trump, who has sparked Canadian outrage with calls for annexation and trade tariffs. Chow stated, "If you want to buy a Tesla, go ahead, but don’t count on taxpayer money to subsidize it."
While the financial impact is minor, Chow described the decision as symbolic, reinforcing Canada’s stance in the ongoing trade dispute. Tesla has not responded to requests for comment.
