P.E.I. Scraps Tesla's Incentives in Electric Vehicle Program
The government of Prince Edward Island has decided to exclude Tesla vehicles from their electric car incentive scheme. According to Environment Minister Gilles Arsenault, this change is due to the tariff threats posed by U.S. President Donald Trump.
During a telephone interview with The Guardian on March 25, Arsenault mentioned that the proposal to remove Teslas from the initiative was originally presented to his department by the Prince Edward Island Automobile Dealers Association.
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“Due to Tesla’s association with the U.S. administration and their tariffs, I took their request seriously and we acted upon it immediately,” said Arsenault.
The province remains receptive to such feedback from partnering organizations, he mentioned additionally.
"P.E.I. has chosen to proceed with making this a reality, and the choice made at an international level has significantly affected our local enterprises," Arsenault stated.
Growing number of EVs
The program currently offers a $5,000 rebate for qualified battery-electric vehicles (BEVs) and $2,500 for plug-in hybrids. Those who purchase of a Level 2 home charger will see $750 of its cost is incentivized. Motor vehicle registration fees for electric vehicles are also waived.
So far, a total of 2,214 electric vehicles have received incentives through the provincial government, with 865 EVs being part of this program just in 2024—a roughly 26 percent rise compared to 2023 when the province supported approximately 682 electric vehicle purchases.
"As a result, the industry appears to be functioning effectively, and I believe individuals are utilizing this incentive program. Consequently, we're also observing an increase in the number of electric vehicles on the roads," stated Arsenault.
To date, more than $10 million has been rebated to Islanders through the EV incentive program.
Opposition response
At the same time, opposition parties appear largely supportive of Prince Edward Island's choice to exclude Teslas from the incentive program.
During a telephone conversation with The Guardian on March 25, Liberal MLA Robert Henderson expressed his preference for having removed Teslas from the program earlier.
"I mean, they removed American alcohol from the store shelves some time ago," he stated, adding that generally he approves of this action.
"I believe that from a policy standpoint—the visual impressions and political climate we face today in North America—this decision to drop Teslas likely makes sense," he stated.
During a telephone interview with The Guardian on March 25, Peter Bevan-Baker, the Green MLA, expressed his agreement with the province's choice.
I wasn't wholly taken aback," he stated. "We've observed similar actions from other provinces such as Nova Scotia, Manitoba, and British Columbia. Additionally, the City of Toronto has recently announced that they will cease offering rebates for taxi services and rideshares if the vehicles involved are Teslas.
Given the variety of electric vehicles offered by Prince Edward Island car dealerships, it’s advantageous to support the local economy by keeping money circulation within the province whenever feasible, as Bevan-Baker noted.
"If this results in a greater share of the rebates and funds allocated for that purpose being directed to Island dealers, I completely support that," he stated.
Other incentives
Bevan-Baker also mentioned that he hopes to see equal focus placed on other initiatives aimed at reducing emissions.
"Although I advocate for individuals transitioning to electric cars, we must simultaneously dedicate equal enthusiasm and financial backing towards enhancing our public transit network and active transport options right here on Prince Edward Island," stated Bevan-Baker.
Henderson further stated that with the increasing number of electric vehicles, funds will need to be allocated to assist in maintaining Prince Edward Island’s roadways.
"Since vehicles using gasoline or diesel have taxes applied to them, but electric vehicles do not face such taxation, this is an essential issue that needs to be tackled going ahead," he stated.
Arsenault mentioned that the EV incentive program will adapt and transform alongside changes in Islanders' driving behaviors.
"We are consistently open to reviewing and evaluating our programs, and that is certainly something we can examine," he stated.
This involves reconsidering the choice to eliminate rewards for Tesla purchases.
“See what the next few months will bring. We’re always willing to have conversations with our neighbours on the southern border,” he said.
By the numbers
The following vehicles were registered in Prince Edward Island in 2024.
- 2,746 hybrid electric vehicles
- 1,369 battery-electric vehicles
- 784 plug-in hybrid cars with electric motors
- 9,430 diesel-engine vehicles (an increase of 10 percent compared to 2022)
- 118,134 gasoline-powered vehicles (representing a two percent rise from 2022)
Ministry of Transport and Infrastructure
Yutaro Sasaki serves as a Local Journalism Initiative reporter, a role supported by the federal government. You can contact him at ysasaki@postmedia.com and followed on X @PEyutarosasaki .
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