Tesla faces collapsing sales in Canada's Québec province, with new registrations tumbling 85%

Sales Performance - Tesla's registrations in Québec dropped dramatically, with only 524 new vehicles registered in Q1 2025, down over 85% from 5,097 in Q4 2024 [1] - The Model Y saw a significant decline from 3,274 units in Q4 2024 to 360 in Q1 2025, while the Model 3 fell from 1,786 to just 96 units, a 94% decrease [2] Market Context - The decline in Tesla's sales in Québec mirrors a similar trend in Europe, where sales fell nearly 50% in April despite growing overall EV demand, indicating that the slump may be more about Tesla's brand than market conditions [3] Regulatory and Political Factors - Tesla has been excluded from Canada's federal EV rebate program, with $43 million in rebates frozen due to a surge in applications, leading to a review of claims [4] - The company will remain ineligible for future incentives as long as tariffs imposed by the U.S. on Canadian goods are in place, and several provinces have removed Tesla from their rebate programs [5] Brand Image and Leadership Issues - The drop in registrations coincides with a global backlash against CEO Elon Musk, particularly in Europe, due to his support for right-wing political parties [6] - Protests and vandalism of Tesla dealerships have occurred in North America, linked to Musk's political involvement [9] Financial Implications - Tesla's shares faced pressure during Musk's political involvement but began to rebound after he announced a shift in focus back to his companies, indicating potential recovery in investor sentiment [10]