In response to U.S. tariffs, New Brunswick looking at selling government-owned Teslas - New Brunswick | Globalnews.ca (2025)

The New Brunswick government says it plans to sell the 11 Teslas it owns, in response to United States tariffs and the prominent role that the carmaker’s CEO plays in the Donald Trump administration.

Premier Susan Holt told reporters last week the government had started exploring how much it can get from the electric vehicles. “Right now, they’re sitting in a parking lot not being used. And so it’s value lost.”

The vehicles were bought pre-owned for about $82,000 each, as part of the province’s climate change action plan initiative, and used by government employees of various departments, New Brunswick’s Transportation Department said in a statement. The sale of the government’s Teslas would be completed by public auction, it added.

There has been a backlash against Tesla since its billionaire CEO Elon Musk started running the U.S. Department of Government Efficiency in the Trump administration, slashing civil service jobs and spending. His critics also point to the CEO’s courting the far-right political party Alternative for Germany.

A report published in January showed global Tesla sales dropped 1.1 per cent last year, its first annual decline in more than a dozen years. The European Automobile Manufacturers’ Association said last month the sales of Tesla in Europe tumbled 49 per cent in the first two months of 2025 compared with a year earlier, even as overall sales of electric vehicles grew.

Tesla did not respond to a question about car sales and resale value of the vehicles in Canada.

The automaker’s image in Canada has also been hit because of Musk’s closeness to Trump, who has imposed tariffs on Canadian goods and threatened to turn the country into the U.S.’s “51st state.”

Last month, several cities in Canada saw demonstrations at Tesla dealerships as part of an international “day of action” aimed at Musk. Demonstrators said they want people to sell their Teslas and dump stock in the company.

Werner Antweiler, associate professor at University of British Columbia’s Sauder School of Business, said the “Tesla halo effect” is diminishing as the company contends with increased competition and Musk’s tarnished image.

Some Tesla owners, perhaps in a bid to avoid being targeted, have placed bumper stickers on their cars with messages like, “I bought it before Elon went nuts.”

“There is an incongruence between Musk’s political proximity to Trump and the concerns that many Tesla buyers have, who don’t share those values, or who tend to be more progressive in their outlook,” Antweiler said.

While Musk’s outsized role in politics has played a role in Tesla’s declining fortunes, he said, the drop in sales can also be attributed to competition from cheaper and more efficient electric cars.

“Tesla is no longer the innovation leader,” he said. “Mind you, the Tesla lineup is very stale.”

Richard Powers, professor at University of Toronto’s Rotman School of Management, said the New Brunswick government is not likely to get market value for the vehicles. “A government is more likely to sell Teslas at a discount because they’re trying to make a political statement,” he said.

However, reselling Teslas to a used-car market does not hurt either Trump or Musk, Antweiler noted.

“Only new car sales influence the bottom line of Tesla,” he said.

This report by The Canadian Press was first published April 11, 2025.

— With files from The Associated Press