Since the start of 2025, Tesla has been mired in political backlash, the loudest of it coming from the left, over Musk's DOGE efforts and faces declines across several key metrics — not to mention the threat of looming tariffs.

In an unsigned letter, Tesla encourages trade representative to reconsider tariffs, saying they could hurt U.S.-based car manufacturers.

Elon Musk told investors to expect Tesla sales to grow this year. Plummeting sales in a growing number of countries complicates that goal.

The move is the latest retaliation coming from Canada towards the U.S., as tariffs between the two countries continue to ramp up. The specific targeting of Tesla occurs as its CEO is closely associated with President Donald Trump and his administration's aggressive tariff policy.