Tesla Motors Canada has told MPs that Ottawa is dismantling key parts of its climate strategy, raising questions about whether the government remains committed to electric vehicles after suspending 2026 sales quotas.“The Government of Canada has begun dismantling its environmental policies, citing the need to respond to the economic impacts imposed by an evolving geopolitical and economic landscape,” Tesla said in a submission to the Commons environment committee. “Maintaining a strong Electric Vehicle Availability Standard will be especially important for Canada in achieving its commitment considering other environmental step backs by this government.”Blacklock's Reporter said the automaker emphasized that a robust electric vehicle quota is crucial for reducing air pollution and meeting climate goals, though it did not indicate whether Canada’s policy changes would affect its own Canadian operations.Cabinet suspended enforcement last September of the 2026 Availability Standard, which had required a minimum 20% electric car quota on new vehicle sales. The regulation was part of a plan to phase out new gasoline and diesel vehicles by 2035. While Ottawa conducted a review of the quota, completed November 4, the results have never been released publicly..Industry groups are warning the suspension could jeopardize investment. Electric Mobility Canada, in a report to the Commons committee, called the mandate a “cornerstone” and said removing it would signal that Canada is retreating from its climate commitments. “In a global race where jurisdictions with strong zero emission vehicle mandates and other industrial policies are winning jobs and capital, Canada cannot afford to fall behind,” the report said.The quota suspension follows cabinet’s January 10, 2025 decision to end $5,000 rebates for new electric vehicle buyers. Statistics Canada data shows dealers experienced the steepest decline in sales since pandemic lockdowns.“In the first quarter, 37,299 new zero emission vehicles were registered, making up 8.7% of all new motor vehicle registrations. This represents a decrease of 23% compared with the same period one year earlier," said StatsCan.Meanwhile, sales of gasoline-powered vehicles surged, with vans up 23% and pick-ups up 10% over the same period, underscoring the challenges facing Canada’s electric vehicle strategy.
