The New Brunswick government has announced its intention to sell the 11 Tesla vehicles in its possession, largely influenced by the impact of United States tariffs and the controversial involvement of Tesla's CEO, Elon Musk, in the Donald Trump administration. Premier Susan Holt revealed to reporters last week that the government is exploring potential buyers and assessing the market value of the cars, which have been inactive and are currently stored in a parking lot.
According to a statement from New Brunswick's Transportation Department, these Teslas were procured as part of the province's climate change action initiative, each costing approximately $82,000. The decision to sell the government-owned Teslas will be executed through public auction, allowing potential bidders to participate in the process.
The sale comes amid a notable shift in Tesla's market performance. A report released in January indicated that the company's sales had declined by 1.1 percent over the previous year, marking the first annual decrease for Tesla in over a decade. This downturn suggests growing challenges for Tesla as the automotive landscape becomes increasingly competitive.
Werner Antweiler, an associate professor at the University of British Columbia's Sauder School of Business, commented on the situation, noting that the "Tesla halo effect"—the brand's perceived prestige and desirability—has begun to fade. This decline is attributed to a combination of intensified competition within the electric vehicle market and the negative perception surrounding CEO Elon Musk, particularly as his public image has faced scrutiny in recent years.
The development of New Brunswick's decision to divest from Tesla vehicles reflects broader economic and political factors, including international tariff implications and local governance prioritization. As the public auction process moves forward, it will be interesting to observe the response from potential buyers and the impact this decision may have on the future of electric vehicle adoption in the province.
This report was initially published on April 11, 2025, highlighting a pivotal moment for both the New Brunswick government and the ever-evolving Tesla brand in the context of changing automotive dynamics.
