Connect with us
[the_ad id="89560"]

Automotive

Canada’s EV house of cards is close to collapsing

Published

8 minute read

CAE Logo By Dan McTeague

Well, Canada’s electric vehicle policies are playing out exactly as I predicted. Which is to say, they’re a disaster.

Back in November, in the immediate aftermath of Donald Trump’s re-election, I wrote in these pages that, whatever else that election might mean for Canada, it would prove big trouble for the Justin Trudeau/Doug Ford EV scam.

The substance of their plot works like so: first, the federal and provincial governments threw mountains of taxpayer dollars in subsidies at automakers so that they’d come to Canada to manufacture EVs. Then Ottawa mandated that Canadians must buy those EVs — exclusively — by the year 2035. That way Ford and Trudeau could pat themselves on the back for “creating jobs,” while EV manufacturers could help themselves to the contents of our wallets twice over.

But the one variable they didn’t account for was a return of Donald Trump to the White House.

Trump had run on a promise to save America from their own back-door EV mandates. Though Kamala Harris had denied that any such mandates existed, they did, and they were founded on two acts of the Biden-Harris administration.

First, they issued an Executive Order setting significantly more onerous tailpipe regulations on all internal combustion engine (ICE) vehicles, with the explicit goal of ensuring that 50 percent of all new vehicles sold in America be electric by 2030.

Second, they granted California a waiver to make those regulations more burdensome still, so that only EVs could realistically be in compliance with them. Since no automaker would want to be locked out of the market of the most populous state, nor could they afford to build one set of cars for California (plus the handful of states which have — idiotically — chosen to align their regulations with California’s) and another set for the rest of the country, they would be forced to increase their manufacture and sale of EVs and decrease their output of ICE vehicles.

Trump’s victory took Canada’s political class completely by surprise, and it threw a spanner into the workings of the Liberals’ plan.

That’s because there just aren’t enough Canadians, or Canadian tax dollars, to make their EV scheme even kinda’ work. Canada’s unique access to the world’s biggest market — America — was a key component of the plan.

After all, vehicles are “the second largest Canadian export by value, at $51 billion in 2023, of which 93 percent was exported to the US,” according to the Canadian Vehicle Manufacturers Association, and “Auto is Ontario’s top export at 28.9 percent of all exports (2023.)”

It further depended on Americans buying more and more EVs every year. But since, when given a choice, most people prefer the cost and convenience of ICE vehicles, this would only work if Americans were pushed into buying EVs, even if in a more roundabout way than they’re being forced on Canadians.

Which is why the plan all began to unravel on January 20, the day of Trump’s inauguration, when he signed Executive Order 14154, “Unleashing American Energy,” which, among other things, rescinded Joe Biden’s pro-EV tailpipe regulations. And it has continued downhill from there.

Just last week, the US Senate voted to repeal the Biden EPA’s waiver for California. Not that that’s the end of the story — in the aftermath of the vote, California governor Gavin Newsom vowed “to fight this unconstitutional attack on California in court.” (Though don’t be surprised if that fight is brief and half-hearted — Newsom has been trying to leave his lifelong leftism behind recently and rebrand as a moderate Democrat in time for his own run at the White House in 2028. Consequently, being saved from his own EV policy might only help his career prospects going forward.)

But it’s worth noting the language used by the Alliance for Automotive Innovation, which represents car companies like Toyota, GM, Volkswagen and Stellantis (several of whom, it should be noted, have received significant subsidies from the Liberal and Ford governments to manufacture EVs), which said in a statement, “The fact is these EV sales mandates were never achievable.”

That’s worth repeating: these EV sales mandates were never achievable!
That’s true in California, and it’s true in Canada as well.

And yet, our political class has refused to accept this reality. Doug Ford actually doubled down on his commitment to heavily subsidizing the EV industry in his recent campaign, saying “I want to make it clear… a re-elected PC government will honour our commitment to invest in the sector,” no matter what Donald Trump does.

Except, as noted above, Donald Trump represents the customers Doug Ford needs!

Meanwhile, our environmentalist-in-chief, Mark Carney, has maintained the Liberal Party’s commitment to the EV mandates, arguing that EVs are essential for his vacuous plan of transforming Canada into a “clean energy superpower.” How exactly? That’s never said.

These are the words of con artists, not men who we should be trusting with the financial wellbeing of our country. Unfortunately, in our recent federal election — and the one in Ontario — this issue was barely discussed, beyond an 11th-hour attempted buzzer-beater from Pierre Poilievre and a feeble talking point from Bonnie Crombie about her concern “that the premier has put all our eggs in the EV basket.”

Meanwhile, 2035 is just around the corner.

So we can’t stop calling attention to this issue. In fact, we’re going to shout about our mindless EV subsidies and mandates from the rooftops until our fellow Canadians wake up to the predicament we’re in. It took some time, but we made them notice the carbon tax (even if the policy change we got from Carbon Tax Carney wasn’t any better.) And we can do it with electric vehicles, too.

Because we don’t have the money, either as a nation or as individuals, to prop this thing up forever.

Dan McTeague is President of Canadians for Affordable Energy.

Before Post

An 18 year veteran of the House of Commons, Dan is widely known in both official languages for his tireless work on energy pricing and saving Canadians money through accurate price forecasts. His Parliamentary initiatives, aimed at helping Canadians cope with affordable energy costs, led to providing Canadians heating fuel rebates on at least two occasions. Widely sought for his extensive work and knowledge in energy pricing, Dan continues to provide valuable insights to North American media and policy makers. He brings three decades of experience and proven efforts on behalf of consumers in both the private and public spheres. Dan is committed to improving energy affordability for Canadians and promoting the benefits we all share in having a strong and robust energy sector.

Follow Author

Automotive

The high price of green virtue

Published on

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

Continue Reading

Automotive

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

Published on

 

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.

Dear Readers:

As a nonprofit, we are dependent on the generosity of our readers.

Please consider making a small donation of any amount here.

Thank you!

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.

Continue Reading

Trending

X