Tesla researcher Troy Teslike has highlighted Tesla Inc.’s (NASDAQ:TSLA) struggle to adapt to lower sales in Canada, predicting GAAP losses for the company starting in Q1 2026.
What Happened: In a post on X on Sunday, Teslike pointed out that Tesla is grappling with a significant drop in sales in Canada, largely due to political controversy.
He cited that sales have nearly hit rock bottom, while the company continues to operate 35 stores across the country, thereby keeping SG&A (Selling, General, and Administrative) costs high.
See Also: Gary Black Warns Tesla Q2 Deliveries Will ‘Disappoint’ — Says Cheaper Models Could Cannibalize Sales
Tesla’s sales had plummeted by 87% in Quebec, Canada, in Q1 2025. This was a two-year low for the company, amid incentive cuts and criticism around Elon Musk's political ties with the Donald Trump administration.
Why It Matters: Tesla’s sales decline in Canada comes at a time when its competitor, General Motors Co. (NYSE:GM), is experiencing a 252% surge in sales in the country. Tesla’s sales woes have been attributed to an 87% decline in deliveries in Quebec, as per data obtained by Le Devoir.
Furthermore, Tesla has been suspected of exploiting Canada’s EV rebate program, with four of its stores allegedly selling an average of 30 cars per hour over three days, thereby claiming over 50% of the rebate funds.
Investor Gary Black, founder of The Future Fund, has also issued a cautious outlook on Tesla’s upcoming second-quarter deliveries, predicting that the company is likely to miss estimates.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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