The Canadian Government Will Give You $5,000 For Buying An Electric Vehicle, But Not A Tesla


The Canadian Federal Government released their yearly budget and this year for the first time Canada will have a nationwide EV incentive program, along with new investments into charging infrastructure in Canada.

This new electric vehicle incentive will allow customers who are buying a new electric vehicle for under $45,000 to apply for a rebate of $5,000 from the Government of Canada. This is the first time Canada has ever had a national EV rebate. In the past individual provinces have had their EV rebate, though not all provinces or territories have had one.

“To encourage more Canadians to buy zero-emission vehicles, Budget 2019 proposes to provide $300 million over three years, starting in 2019–20, to Transport Canada to introduce a new federal purchase incentive of up to $5,000 for electric battery or hydrogen fuel cell vehicles with a manufacturer’s suggested retail price of less than $45,000. Program details to follow.”

This incentive will help people buy new vehicles like the Nissan Leaf, Chevy Bolt EV, and Hyundai long Electric. Notably absent from that list is Tesla. This is because the cheapest car Tesla makes is the Model 3, which starts at $47,000 in Canada.


Along with the new EV rebate the government has included new investments into the charging infrastructure necessary to assist in the future adoption of electric vehicles.

The Government Statement:

  • To expand the network of zero-emission vehicle charging and refuelling stations, Budget 2019 proposes to build on previous investments by providing Natural Resources Canada with $130 million over five years, starting in 2019–20, to deploy new recharging and refuelling stations in workplaces, public parking spots, commercial and multi-unit residential buildings, and remote locations.

  • Meeting the ambitious sales targets requires automakers to make sufficient models and numbers of zero-emission vehicles available for sale to meet Canadian needs. Budget 2019 proposes to provide $5 million over five years, starting in 2019–20 to Transport Canada to work with auto manufacturers to secure voluntary zero-emission vehicle sales targets to ensure that vehicle supply meets increased demand.

  • To attract and support new high-quality, job-creating investments in zero-emission vehicle manufacturing in Canada, automotive manufacturers and parts suppliers can access funding through the Strategic Innovation Fund, which was recently provided $800 million in additional funding through the 2018 Fall Economic Statement.

It will be interesting to see how Canadians respond to this new electric vehicle funding as in the past the country has been somewhat slow to adapt to new technology such as electric vehicles. Our high production of fossil fuels may make Canadians feel the government isn't supporting our local industries and is instead investing in what they would consider a waste of time.

I welcome the investments into EV technology and vehicles in Canada. I'm fascinated with electric vehicles, and the sooner a nationwide charging infrastructure can be built the better.

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