American EV (electric vehicle) maker Tesla (TSLA) is facing another blow from U.S.’ Trade Tariffs as Toronto cut EV incentives for taxis and ride-sharing vehicles of Tesla make. Toronto’s mayor, Olivia Chow, announced the cuts yesterday, stating that the incentive reductions are effective from March 1. The mayor also added that the incentive cuts would not have a significant financial impact on consumers’ buying decision, but it is more of a “symbolic” move targeting CEO Elon Musk.
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Importantly, Chow noted that the incentive cuts are a result of the ongoing trade tensions and will continue until the trade issues with the U.S. are resolved. Musk, who is one of the top advisors to President Trump, has pushed for a nationwide annexation and the imposition of tariffs on Canadian goods. This has deeply angered Canadian officials and the public, who have shown their anger through protests and the banning of Tesla EVs.
Toronto Targets Zero Emission Sans Tesla
Notably, Toronto is working to reduce carbon emissions in the city by incentivizing taxi drivers to purchase and use EVs. The incentives are given in the form of reduced licensing and renewal fees until the end of 2029. However, Chow’s decision means the city’s target of achieving zero emissions will have to proceed without Tesla EVs.
The mayor also mentioned that people are free to buy Tesla EVs if they wish, but they should not “count on taxpayer money to subsidize it.” She added that taxi drivers could purchase other EVs for commercial use.
Canada is also retaliating against U.S.’ 25% trade tariffs by excluding U.S. companies from being eligible for government tenders. Meanwhile, Ontario has also threatened to impose a surcharge on electricity exports to American states. British Columbia also excluded Tesla’s EV charging stations and home batteries from rebate programs owing to the ongoing trade tensions. What’s worse, people have also filed a petition to revoke Musk’s Canadian citizenship.
What Is the Prediction for Tesla Stock?
Wall Street remains wary of Tesla’s stock trajectory amid the global protests against the EV maker and Musk’s tarnished brand image. Tesla’s auto sales have taken a severe hit since Musk joined camp Trump and took drastic measures as the head of DOGE (Department of Government Efficiency). Analysts have also reacted with rating downgrades and price target cuts on Tesla stock.
On TipRanks, TSLA stock has a Hold consensus rating based on 12 Buys, 13 Holds, and 12 Sell ratings. Also, the average Tesla price target of $323.83 implies 36.1% upside potential from current levels. Year-to-date, TSLA stock has lost 41.1% due to the growing tensions.