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Electric vehicle sales are falling hard in BC, and it is time to recognize reality.

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From Energy Now

By Barry Penner

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British Columbia’s electric vehicle (EV) sales mandates were created with good intentions, but the collision with reality is now obvious.

Although we are still in 2025, the 26 percent zero-emission vehicle sales mandate is already hitting our dealerships. That’s because it applies to the 2026 model year, and many of those models are starting to arrive across the province now.

While 26 percent sounds moderate compared to 90 percent by 2030, or 100 percent by 2035, as also required by BC law, the facts on the ground are grim.

According to S&P Global Mobility data, EV sales in BC have plummeted to around 15.4 percent as of June 2025, down from nearly 25 percent in mid-2024. This decline happened fast after both federal, up to $5,000, and provincial governments, up to $4,000 in BC, stopped funding their EV rebate programs earlier this year. So, the very incentives that made expensive electric vehicles accessible to middle-income buyers disappeared just when they were needed most.

Government polling shows 60 percent of British Columbians say cost is their biggest barrier to buying electric vehicles. And yet, both levels of government pulled the financial support while maintaining the sales mandates, with penalties of up to $20,000 per non-compliant vehicle. This is not just bad policy, it’s economic punishment for our auto sector.

Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, pointed out the severe consequences for automakers. Federally, failing to meet the EV sales targets could mean astronomical penalties. A company selling 300,000 vehicles a year that misses its target by 10 percent could face a $600 million fine. These are not theoretical risks; they are real and could mean manufacturers reduce their Canadian presence, potentially costing thousands of auto jobs.

And powering an all-electric vehicle fleet is no small task. The organization of which I am chair, the Energy Futures Institute, modelled BC’s electricity needs under the 2035 mandate scenario and found full implementation would require an extra two Site C dams’ worth of electricity. We’ve already been importing 20 to 25 percent of our electricity annually for the past few years, often from fossil fuels, which contradicts our clean energy goals.

Electric vehicles represent an important technological advance, but the path matters. With governments forcing unattainable mandates, they are creating resentment amongst potential buyers and a political backlash against EVs themselves.

Energy Futures recently learned that the BC government is undertaking a technical review of the Zero-Emission Vehicle Act, quietly acknowledging that sales targets are increasingly seen as next to impossible. Under consideration is a change to the targets themselves, along with adjustments to compliance ratios and eligibility rules for plug-in hybrids.

The market shift to regular hybrids, which you don’t plug in, is not supported by rebates, but is happening nevertheless. However, these vehicles, such as the Toyota Prius, are not considered “clean” enough under BC legislation and could attract a penalty of $20,000 each.

This only makes things worse for consumers who are already stretched. Punitive mandates create market distortions, restrict consumer choice, and drive up vehicle prices for everyone, especially lower-income families who rely on affordable used cars.

Instead of accelerating into economically harmful mandates, both provincial and federal governments should recalibrate. Ottawa’s Environment Minister Julie Dabrusin’s statement earlier this month to renew consumer rebates is a good start, if the government is determined to interfere with the marketplace. But rebates alone won’t be enough. We need to slow down, invest in required charging infrastructure, and support market-based innovation, not forced adoption through penalties.

A sustainable energy future for BC and Canada requires smart, pragmatic policy, not economic coercion. Let’s take our foot off the gas and realign our policies with reality, protect jobs, consumer affordability, and real environmental progress. Then we can have a successful transition to electric vehicles.


Barry Penner is chair of the Energy Futures Institute, former president of the Pacific Northwest Economic Region and former four-term B.C. MLA and cabinet minister.

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The high price of green virtue

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Macdonald-Laurier Institute

By Jerome Gessaroli for Inside Policy

Reducing transportation emissions is a worthy goal, but policy must be guided by evidence, not ideology.

In the next few years, the average new vehicle in British Columbia could reach $80,000, not because of inflation, but largely because of provincial and federal climate policy. By forcing zero-emission-vehicle (ZEV) targets faster than the market can afford, both governments risk turning climate ambition into an affordability crisis.

EVs are part of the solution, but mandates that outpace market acceptance risk creating real-world challenges, ranging from cold-weather travel to sparse rural charging to the cost and inconvenience for drivers without home charging. As Victoria and Ottawa review their ZEV policies, the goal is to match ambition with evidence.

Introduced in 2019, BC’s mandate was meant to accelerate electrification and cut emissions from light-duty vehicles. In 2023, however, it became far more stringent, setting the most aggressive ZEV targets in North America. What began as a plan to boost ZEV adoption has now become policy orthodoxy. By 2030, automakers must ensure that 90 per cent of new light-duty vehicles sold in BC are zero-emission, regardless of what consumers want or can afford. The evidence suggests this approach is out of step with market realities.

The province isn’t alone in pursuing EV mandates, but its pace is unmatched. British Columbia, Quebec, and the federal government are the only ones in Canada with such rules. BC’s targets rise much faster than California’s, the jurisdiction that usually sets the bar on green-vehicle policy, though all have the same goal of making every new vehicle zero-emission by 2035.

According to Canadian Black Book, 2025 model EVs are about $17,800 more expensive than gas-powered vehicles. However, ever since Ottawa and BC removed EV purchase incentives, sales have fallen and have not yet recovered. Actual demand in BC sits near 16 per cent of new vehicle sales, well below the 26 per cent mandate for 2026. To close that gap, automakers may have to pay steep penalties or cut back on gas-vehicle sales to meet government goals.

The mandate also allows domestic automakers to meet their targets by purchasing credits from companies, such as Tesla, which hold surplus credits, transferring millions of dollars out of the country simply to comply with provincial rules. But even that workaround is not sustainable. As both federal and provincial mandates tighten, credit supplies will shrink and costs will rise, leaving automakers more likely to limit gas-vehicle sales.

It may be climate policy in intent, but in reality, it acts like a luxury tax on mobility. Higher new-vehicle prices are pushing consumers toward used cars, inflating second-hand prices, and keeping older, higher-emitting vehicles on the road longer. Lower-income and rural households are hit hardest, a perverse outcome for a policy meant to reduce emissions.

Infrastructure is another obstacle. Charging-station expansion and grid upgrades remain far behind what is needed to support mass electrification. Estimates suggest powering BC’s future EV fleet alone could require the electricity output of almost two additional Site C dams by 2040. In rural and northern regions, where distances are long and winters are harsh, drivers are understandably reluctant to switch. Beyond infrastructure, changing market and policy conditions now pose additional risks to Canada’s EV goals.

Major automakers have delayed or cancelled new EV models and battery-plant investments. The United States has scaled back or reversed federal and state EV targets and reoriented subsidies toward domestic manufacturing. These shifts are likely to slow EV model availability and investment across North America, pushing both British Columbia and Ottawa to reconsider how realistic their own targets are in more challenging market conditions.

Meanwhile, many Canadians are feeling the strain of record living costs. Recent polling by Abacus Data and  Ipsos shows that most Canadians view rising living costs as the country’s most pressing challenge, with many saying the situation is worsening. In that climate, pressing ahead with aggressive mandates despite affordability concerns appears driven more by green ideology than by evidence. Consumers are not rejecting EVs. They are rejecting unrealistic timelines and unaffordable expectations.

Reducing transportation emissions is a worthy goal, but policy must be guided by evidence, not ideology. When targets become detached from real-world conditions, ideology replaces judgment. Pushing too hard risks backlash that can undo the very progress we are trying to achieve.

Neither British Columbia nor the federal government needs to abandon its clean-transportation objectives, but both need to adjust them. That means setting targets that match realistic adoption rates, as EVs become more affordable and capable, and allowing more flexible compliance based on emissions reductions rather than vehicle type. In simple terms, the goal should be cutting emissions, not forcing people to buy a specific type of car. These steps would align ambition with reality and ensure that environmental progress strengthens, rather than undermines, public trust.

With both Ottawa and Victoria reviewing their EV mandates, their next moves will show whether Canadian climate policy is driven by evidence or by ideology. Adjusting targets to reflect real-world affordability and adoption rates would signal pragmatism and strengthen public trust in the country’s clean-energy transition.


Jerome Gessaroli is a senior fellow at the Macdonald-Laurier Institute and leads the Sound Economic Policy Project at the BC Institute of British Columbia

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Automotive

Elon Musk Poised To Become World’s First Trillionaire After Shareholder Vote

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From the Daily Caller News Foundation

By Mariane Angela

Tesla shareholders voted Thursday to approve an enormous compensation package that could make Elon Musk the world’s first trillionaire.

At Tesla’s Austin headquarters, investors backed Musk’s 12-step plan that ties his potential trillion-dollar payout to a series of aggressive financial and operational milestones, including raising the company’s valuation from roughly $1.4 trillion to $8.5 trillion and selling one million humanoid robots within a decade. Musk hailed the outcome as a turning point for Tesla’s future.

“What we’re about to embark upon is not merely a new chapter of the future of Tesla but a whole new book,” Musk said, as The New York Times reported.

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The decision cements investor confidence in Musk’s “moonshot” management style and reinforces the belief that Tesla’s success depends heavily on its founder and his leadership.

“Those who claim the plan is ‘too large’ ignore the scale of ambition that has historically defined Tesla’s trajectory,” the Florida State Board of Administration said in a securities filing describing why it voted for Mr. Musk’s pay plan. “A company that went from near bankruptcy to global leadership in E.V.s and clean energy under similar frameworks has earned the right to use incentive models that reward moonshot performance.”

Investors like Ark Invest CEO Cathie Wood defended Tesla’s decision, saying the plan aligns shareholder rewards with company performance.

“I do not understand why investors are voting against Elon’s pay package when they and their clients would benefit enormously if he and his incredible team meet such high goals,” Wood wrote on X.

Norway’s sovereign wealth fund, Norges Bank Investment Management — one of Tesla’s largest shareholders — broke ranks, however, and voted against the pay plan, saying that the package was excessive.

“While we appreciate the significant value created under Mr. Musk’s visionary role, we are concerned about the total size of the award, dilution, and lack of mitigation of key person risk,” the firm said.

The vote comes months after Musk wrapped up his short-lived government role under President Donald Trump. In February, Musk and his Department of Government Efficiency (DOGE) team sparked a firestorm when they announced plans to eliminate the U.S. Agency for International Development, drawing backlash from Democrats and prompting protests targeting Musk and his companies, including Tesla.

Back in May, Musk announced that his “scheduled time” leading DOGE had ended.

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