Tesla stock sank 1.2% in premarket trading.

Tesla researcher Troy Teslike has highlighted Tesla Inc.’s struggle to adapt to lower sales in Canada, predicting GAAP losses for the company starting in Q1 2026.

In a post on X on Sunday, Teslike pointed out that Tesla is grappling with a significant drop in sales in Canada, largely due to political controversy.

He cited that sales have nearly hit rock bottom, while the company continues to operate 35 stores across the country, thereby keeping SG&A (Selling, General, and Administrative) costs high.

Tesla’s sales had plummeted by 87% in Quebec, Canada, in Q1 2025. This was a two-year low for the company, amid incentive cuts and criticism around Elon Musk's political ties with the Donald Trump administration.

Why It Matters: Tesla’s sales decline in Canada comes at a time when its competitor, General Motors Co., is experiencing a 252% surge in sales in the country. Tesla’s sales woes have been attributed to an 87% decline in deliveries in Quebec, as per data obtained by Le Devoir.

Furthermore, Tesla has been suspected of exploiting Canada’s EV rebate program, with four of its stores allegedly selling an average of 30 cars per hour over three days, thereby claiming over 50% of the rebate funds.