Toronto Mayor Olivia Chow announced on Monday that the city is discontinuing financial incentives for purchasing Tesla vehicles for use as taxis or ride-shares due to trade tensions with the United States. The city aims to encourage the adoption of electric vehicles for hire by offering reduced licensing and renewal fees until the end of 2029 to help reduce emissions.

As of March 1, Tesla vehicles are no longer eligible for these incentives. Mayor Chow stated, "The vehicles for hire, like taxis, will have to find a different kind of car," highlighting that there are other electric vehicle options available.

The exclusion of Tesla vehicles will remain until trade issues with the U.S. are resolved. When asked about the decision, Chow explained that it was in response to Tesla CEO Elon Musk's advisory role to U.S. President Trump, who has called for Canada to annex and increase tariffs on Canadian products.

Chow clarified, "If you want to buy a Tesla, go ahead, but don't count on taxpayer money to subsidize it." She emphasized that the financial impact of this change would be minimal, stating that it is primarily symbolic.