In a shocking turn of events, Canada has officially banned Tesla from its electric vehicle incentive program, freezing all rebate payments amid a fierce diplomatic clash over U.S. tariffs. This unprecedented move marks a significant blow to the electric vehicle giant, led by Elon Musk, and raises urgent questions about its future in the North American market.

Transport Canada has launched an investigation into Tesla’s rebate claims, following allegations of manipulation in a program that has previously funneled millions into the company. Prime Minister Mark Carney, in a bold response to President Donald Trump’s recent 25% tariffs on Canadian auto imports, condemned the U.S. actions as a direct attack on Canadian workers. The Canadian government’s decision comes in the wake of Tesla’s alarming spike in rebate applications, which soared from 300 to 5,800 in a matter of weeks, prompting officials to deem the situation unsustainable.

As tensions escalate, Tesla’s stock has already felt the repercussions, plummeting 5.6% to $272.06, a stark reminder of the volatile landscape the company now faces. With Canada being a critical player in the automotive sector—exporting $51 billion worth of vehicles, primarily to the U.S.—the fallout from this ban could ripple through global supply chains and intensify the ongoing trade wars.

Protests have erupted across Canada, with acts of vandalism targeting Tesla dealerships, fueled by public outrage over Musk’s political ties and perceived exploitation of the incentive program. As the automotive industry watches closely, the stakes have never been higher for Tesla. Can the company navigate this crisis and restore its standing, or is this the beginning of the end for its golden era? The coming weeks will be critical as Tesla grapples with its future amidst a rapidly shifting global landscape.