Tesla Deliveries Drop 87% In Quebec in Q1, Hitting 2-Year Low Amid Incentive Cuts, Musk's Political Ties

Tesla Inc. (NASDAQ:TSLA) experienced an 87% decline in sales in the Canadian province of Quebec as Elon Musk's company continues to battle sales woes.

What Happened: Tesla delivered 524 vehicles in Quebec in Q1 2025, an 87% year-on-year decline compared to last year, according to data obtained by Le Devoir.

The report suggests that the decline in sales is a result of Musk's close involvement with U.S. President Donald Trump, but also because Quebec as well as Canadian governments ended key incentives for the company’s EVs in the province.

The report also mentions that new registrations for Tesla vehicles in Quebec fell to a two-year low, signaling increased avoidance among potential EV buyers for Musk's company.

Why It Matters: Tesla has been grappling with declining sales figures in multiple markets across the world. Recently, the company's sales fell 49% in Europe in April 2025 as BEVs recorded a surge in market share in the region.

This comes in as Tesla rival BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) overtook the company in sales for the first time ever in Europe as the Chinese EV giant continues to expand into the European market.

Despite the declining sales in most regions, Tesla has maintained a strong growth in vehicle sales in the Chinese domestic market as the company registered over 11,000 new sales for two consecutive weeks, which could provide some relief to the company ahead of the June Robotaxi launch.

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• Elon Musk Admits He Spent ‘Too Much Time’ On Politics After Tesla Sales Decline In Multiple Regions

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