Tesla, which once dominated electric vehicle (EV) sales, is now struggling in Canada’s Atlantic region, one of the country’s most EV-friendly markets. Québec’s vehicle registration authority reports that the number of new Tesla vehicles registered fell by more than 85% from the previous quarter in the first quarter of 2025.
Only 524 Tesla vehicles were registered from January to March, a huge decline from the last quarter of 2024, when 5,097 were registered. These numbers display that there are more significant, possibly structural problems for the EV giant than just a temporary slowdown.
Model Y and Model 3 Lead the Decline
The collapse mainly hit the Model Y and Model 3, which are among Tesla’s most well-known models. There was a huge reduction in Model Y sales, from over 3,000 in the last quarter of 2024 to just 360 in the first quarter of 2025, a decline of almost 89%. The Model 3, claimed to be more accessible, had a huge 94% drop, dropping from 1,786 cars last quarter to just 96 this quarter.
Although automotive sales are usually more sluggish in winter, Tesla’s drop from last year is much steeper than what is usual for this time, and this has raised doubts about where the company stands in Canada.
While the numbers are based on Québec, the trend shows Tesla is slowing down its sales internationally. Europe, which was a major part of Tesla’s growth, is now facing a drop in demand. Last April, sales of Tesla in Europe fell by about 50% from the year before, despite increasing sales of EVs. The contrast implies that Tesla’s troubles are related to strategy, competition, and how the market views the company more than to general trends in the industry.
Competition and Consumer Sentiment May Be the Key Factor
Legacy auto companies like Hyundai, Volkswagen, and Ford have stepped up their EVs, giving consumers other good choices besides those from Tesla. VinFast and Polestar, both new players in the Canadian market, are becoming popular by pricing their cars less and providing appealing leasing offers.
Changes or delays in electric vehicle (EV) incentives at both provincial and federal levels could have stopped people from making such purchases. The traditional rebates for EV buyers in Quebec have played a big role in sales, changes or doubts about these programs can still reduce buyer numbers.
Tesla is getting a lot of negativity due to issues with its vehicles, difficulties with getting serviced, and statements made by Elon Musk. In a competitive market, keeping consumers loyal gets difficult if their issues are not being resolved.
Can Tesla Recover?
The quick loss in Tesla’s share in Québec could be repeated elsewhere. What Canadian and European markets went through for the company is very different from their fast and steady rise in the beginning. Tesla may recover by getting creative and acting quickly, for instance by cutting prices, widening its support network, or giving region-specific incentives.
