Decline in Tesla's Brand Favor Among Canadian Electric Vehicle Buyers by 55% According to Research Findings
In a recent shift, interest in Tesla among Canadian electric vehicle (EV) shoppers has dropped significantly, as revealed by the J.D. Power 2025 Canada Electric Vehicle Consideration Study.
Tesla, which once led the pack with 29% of potential EV buyers considering it for their next vehicle, now finds itself in fourth place, with only 13% of respondents including it in their shortlist. This marks a significant decline since the study began four years ago, and a drop from its previous position as the top brand considered for electric vehicles.
The reasons behind this shift are varied. According to the study, the top concerns among those hesitant to go electric include affordability, range anxiety, and lack of charging infrastructure. The decline in Tesla's appeal may also be due to political controversy, rising vehicle prices, and the removal of provincial and federal EV incentives.
Interestingly, Tesla's position in the EV consideration rankings does not seem to have been directly impacted by Elon Musk's comment on Twitter, "Canada is not a real country," which was a particularly damaging moment for Tesla's image in Canada. However, the study did not mention any specific impact of the paused federal government's $5,000 iZEV rebate program on Tesla's position in the rankings.
The study did note that 42% of potential EV buyers said the removal of the rebate negatively affected their purchase plans. Overall, the federal government has pledged to reinstate the $5,000 iZEV rebate program, but no timeline has been announced.
While Tesla's dominance in the Canadian EV market appears to be waning, it's not all bad news for the electric vehicle industry. The study found that 28% of respondents said they were likely to consider an electric vehicle for their next vehicle, down slightly from 29% in 2024. Overall interest in electric vehicles among Canadian shoppers remains relatively flat at 28%.
The study also highlighted that General Motors (GM) has substantially increased its EV market share in Canada, capturing a notable portion of the market and surpassing Tesla's sales in the first half of 2025. GM Canada's EV market share tripled from 8.1% a year ago to 23.2% in Q2 2025, making GM the leading EV seller in Canada for that period.
These findings suggest a more competitive EV market in Canada, with legacy automakers like GM increasing their influence. Despite Tesla's drop in popularity, the electric vehicle industry remains a growing sector, with consumers increasingly considering a variety of brands as they make the switch to electric vehicles.
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- The decline in Tesla's popularity among Canadian EV shoppers might be attributed to concerns about affordability, range anxiety, and the lack of charging infrastructure, as well as political controversy, rising vehicle prices, and the removal of provincial and federal EV incentives.
- The increase in General Motors' EV market share in Canada, along with the relative stability of overall interest in electric vehicles among Canadian shoppers, indicates a growing and more competitive electric vehicle market, with consumers considering a variety of brands as they make the switch to electric vehicles.
