Toronto has decided to stop offering financial incentives for the purchase of Tesla vehicles to be used as taxis or ride shares. This decision is a response to trade tensions with the United States, according to Toronto's mayor, Olivia Chow. The city had been encouraging the switch to electric vehicles for hire by providing reductions in licensing fees and renewal fees to drivers and owners until the end of 2029 to help reduce emissions.

Beginning March 1, Tesla vehicles are no longer eligible for these incentives, as Chow announced in a news conference. She mentioned that taxis and other vehicles for hire will need to opt for different electric car options as Tesla vehicles are excluded until trade issues with the U.S. are resolved. The decision was made in response to Tesla CEO Elon Musk's close relationship with U.S. President Donald Trump, who has imposed tariffs on Canadian products, causing tensions between the two countries.

Chow clarified that the impact of excluding Tesla vehicles from the incentives would not be significant, describing it as more of a symbolic gesture. Tesla did not immediately respond to requests for comment. The city's stance remains firm that citizens can still purchase Tesla vehicles but should not expect taxpayer money to subsidize them.