Canada’s new trade agreement with China has cracked open the door for Chinese-built EVs, and the first cars are already landing on Canadian soil. The government has not said which brands are coming through, but the early money is on Tesla.

The math behind the deal is straightforward. EVs imported from China once faced a punishing 100 percent additional tariff. Now they pay just 6.1 percent. The catch is volume. For the program’s first year, imports at the reduced rate are capped at 49,000 units, split into two halves: 24,500 from March through August, and another 24,500 from September through February.

Read: Canada’s New Chinese EV Quota Has A Tesla-Sized Problem Already

Data from Global Affairs Canada reveals that in May, 2,910 eligible vehicles were imported into Canada, accounting for just under 12 percent of the quota for the current six-month period. The government has made no mention of which brands received the lowered tariffs, but Tesla is thought to have accounted for the vast majority of them, given that it’s now building Model 3s at its Shanghai factory and exporting them to Canada.

By comparison, most of Tesla’s Chinese rivals are still early in their Canadian expansions and aren’t ready to export yet. According to Drive Tesla Canada, the only non-Tesla EVs from China to reach Canada in May were 18 examples of the high-end Lotus Eletre.

Others Are Coming From China Too

From the moment the new tariff quota system was announced, Tesla was expected to take early advantage of it. In addition to Geely starting to import Lotus Eletres from China, the group also owns the Volvo and Polestar brands, both of which already sell their vehicles in the country. Models from these two brands are also expected to benefit from the lowered tariffs, although it doesn’t yet appear that they’ve done so.

As we reported last month, a slew of new brands are gearing up to launch in Canada. Among these is Chery, which is expected to soon roll out vehicles from its Jaecoo brand nationwide. In addition, it’s understood that BYD wants to open as many as 20 locations in Canada this year and may even build its own local factory.

Geely will also grow its footprint beyond the Lotus, Volvo, and Polestar brands. It is readying Zeekr for a local launch and has already started hiring for senior-level positions in Toronto.

New car buyers in Canada are making the most of newly introduced EV subsidies and, since February, have already claimed more than $122 million. However, a new report reveals that many dealerships are still waiting on the government to reimburse them.

Canada’s Electric Vehicle Affordability Program (EVAP) was reintroduced on February 16 and allows dealers to immediately apply the applicable rebate and then seek reimbursement from the government. As of May 29, 24,389 claims had been recorded in the database, totaling $122 million in subsidies from the $2.275 billion allocated by the government over the next five years.

Read: Americans Pay $37K For The Cheapest Tesla, Canada Got A Chinese One For $29K

Incentives are available for vehicles that cost $50,000 or less. They can reach up to $5,000 for battery-electric and fuel-cell electric vehicles, and at $2,500 for plug-in hybrid vehicles.

The program’s reintroduction is great news for buyers. Canada operated a similar rebate program between 2019 and 2025, encouraging locals to buy more fuel-efficient vehicles. When that program ended in January 2025, EV sales fell from an 18 percent share of total new car sales to just 10 percent.

According to CTV News, sales jumped more than 80 percent in March compared to February, right after the rebates could be claimed again.

However, while vehicles sold from February 16 have been eligible for the subsidies, dealers weren’t able to file reimbursement claims until April 6. The Canadian Auto Dealers Association (CADA) says many dealerships are still waiting to be paid, with some waiting for more than $200,000 in rebates.

Some Delays Caused By Simple Typos

“The commitment to pay dealers in a timely manner has not happened in the early days of the program,” CADA spokesperson Huw Williams said. “There does not seem to be an appreciation that the timelines for repayment are hurting business cash flow. This is money we are advancing on behalf of the federal government.”

Some rebate claims have reportedly been rejected due to simple typos, and there’s no way to appeal or review those denials. According to Transport Canada, it’s working to quickly make the reimbursements.

“There is no hold on repayments; complete and validated claims continue to be processed and reimbursed,” it said. “While Transport Canada aims to process complete and accurate claims as quickly as possible, timelines may vary depending on validation requirements and submission volumes.”

Nissan is on a desperate mission to turn its business around, and selling its more affordable Chinese-built EVs in Canada could form a small but still important part of that plan. But it won’t help US drivers one bit.

According to Nissan Americas boss Christian Meunier, the company is exploring whether vehicles produced through its Dongfeng joint venture in China could eventually reach Canadian showrooms, Bloomberg reports. Meunier didn’t specify which models are under consideration, but confirmed Nissan is actively evaluating the idea after Canada loosened restrictions surrounding Chinese-built imports.

Related: Nissan’s New Midsize SUV Costs Less Than A Kicks And Has More Screens Than A Mercedes

Earlier this year, Canada agreed to allow up to 49,000 Chinese-made cars into the country annually. That decision has already started reshaping the market. Tesla recently began advertising a Canadian-market Model 3 sourced from Shanghai with pricing that undercuts previous versions by a substantial margin. However, due to the US tariff stance on Chinese vehicles, none of the Chinese-origin models will realistically make it to the US, even from Canada.

For Nissan, the attraction is obvious. Chinese factories can produce EVs faster and more cheaply than many plants elsewhere, and Nissan desperately needs competitive products right now. New CEO Ivan Espinosa has inherited a company weighed down by aging vehicles, declining sales, and years of financial instability. Making more use of its assets in China could buy Nissan valuable breathing room.

Nissan’s Global Plan For China

Exports are already central to the company’s recovery plans. Espinosa reportedly wants Nissan to initially export 100,000 Chinese-built vehicles annually around the world, before eventually tripling that number to 300,000 units, Bloomberg says. Latin America gets first bite, models arriving there including the electric N7 sedan (above) and PHEV Frontier Pro pickup (below). The pair start at around $17,000 and $26,000 respectively in China, though those numbers are unlikely to survive the trip abroad.

The N7 EV could work in Canada alongside both the Frontrier and the NX8 SUV (bottom gallery, priced from around $22K in China), because there’s one thing about the new trade rules that doesn’t seem to be getting the coverage it deserves. It’s that Canada isn’t just allowing full EVs entry from China, but also electrified vehicles. That means hybrids and plug-in hybrids qualify, too.

Chinese Brands Eyeing Up Nissan’s Western Plants

Nissan is at the same time also aggressively cutting costs across Europe, including reducing production capacity at its Sunderland plant in the UK, a story which also comes with a China twist. Reports suggest Nissan has held talks with several Chinese automakers, including Chery, about building vehicles in the idled part of the Sunderland facility.

There’s no suggestion yet that Donfeng plans to build cars in Canada, but the country’s relaxed rules make that a possibility, and Nissan rival Stellantis is already looking at building Chinese Leapmotor EVs in the mothballed Jeep plant in Brampton, Ontario.

Nissan

Canada may not be the first country you’d back to lead an electrified car revolution, but it seems that the tides are changing, with buyers snapping up 21,574 new ZEVs (Zero Emission Vehicles) in March 2026 alone, according to a Statistics Canada report. That’s a 74.7% increase over March 2025 figures.

ZEVs cover any vehicle that can produce zero tailpipe emissions, which includes PHEVs or Plug-in Hybrid Electric Vehicles, which can achieve this when operating in purely electric vehicle mode. In fact, new ZEVs accounted for 12.2% of all new vehicles sold in March 2026, compared to 6.6% the same month last year.

Read: Canada’s China Deal Promised Affordable EVs, But $100,000 SUVs Are First Off The Boat

Huw Williams, Canadian Automotive Dealers Association spokesperson, believes that this uptick in electrified demand is a sign of things to come. “We can see it on the ground (at dealerships) the surge in gas prices and the return of federal (EV) incentives is working to drive the sales. One of the other fundamentals working to drive sales is consumers see their neighbors with EV’s, they’re trusting them more each day,” he told CTV News.

This drive is also backed by the federal government, which introduced a new five-year EV incentives program. Rolled out in February 2026, the program offers rebates of up to $5,000 and covers hybrid vehicles, too.

Toyota & Honda Thrive, Chinese EVs Are Coming

Brendan Sweeney, President of the Pacific Manufacturing Association of Canada, points out that electrification is already being accepted at a great pace in Canada. “The majority of Honda and Toyota’s vehicles that are made in Canada are electrified; they reduce tailpipe emissions by 25 percent to 30 percent, and we know those are in high demand, so is there a future for electrified vehicles in Canada,” he said.

Plus, Canada is now preparing to welcome up to 49,000 Chinese EVs per year, rising to as high as 70,000 per year by 2030. Williams says, “We’re also hearing about interesting joint venture projects with Chinese companies coming to North America, we’re also hearing about exciting hybrids in the pipeline and a variety of consumer choice that’s going to be coming from all over the world.”

Charging Stations Need To Be More Prevalent

Of course, Canada’s road to electrification isn’t as smooth as you’d hope just yet. One major stumbling block is the proliferation of charging stations. While there’s a pretty decent number out there, they’ll need to become even more prevalent as more EVs take to the roads.

In short, you’ll need to have more EV charging bays in closer proximity to each other, given that cold weather can cause notable range reduction. Williams highlights this, saying, “We have to focus on reducing the charging anxiety, that means charging stations that work, charging stations that are reliable, and charging stations that are in the places that consumers need them most.”

The global plug-in market keeps tilting in odd directions. Demand for battery-electric and plug-in hybrid cars is up worldwide, almost entirely on the back of Europe, while the two markets that used to lead the charge are losing altitude.

According to data released by Benchmark Mineral Intelligence (BMI), roughly 1.6 million EVs and PHEVs were sold globally in April. That works out to a 6 percent year-over-year gain, though it represents a 9 percent step down from March, when subsidy expirations and climbing fuel prices pulled buyers forward. Europe is doing most of the lifting.

Read: Global EV Sales Just Fell 11%, But Carmakers Found A Surprising Backup Plan

European plug-in sales slipped 24 percent from March but jumped 27 percent against April last year, with just over 400,000 units moved. Italy nearly doubled its volume, while France climbed 36 percent, and Germany rose 33 percent. The war in Iran has fed into the trend as well, with EV and PHEV sales running up 19 percent year-on-year in January and February before the conflict, then accelerating to 30 percent growth across March and April.

A growing number of vehicles from Chinese brands across the region have also contributed to strong demand. This year, 22 percent of all plug-in cars sold in Europe were produced in China, despite being subjected to tariffs.

North America Falls

Things are very different in North America. Total EV and PHEV sales have slipped 25 percent year-to-date, while in Mexico they’re down 50 percent. In total, an estimated 120,000 EVs and PHEVs were sold in North America in April, down 28 percent from last year. Through the first four months of 2026, total sales sat at roughly 450,000 units. The introduction of the Electric Vehicle Affordability Program in Canada may help to boost sales throughout the rest of this year.

Global EV And PHEV Sales

Sales have also dropped in China. Year-to-date, they’re down 17 percent to around 2.8 million, with the decline largely concentrated in the smaller vehicle segments due to subsidy adjustments introduced earlier this year. In total, roughly 850,000 EV and PHEV models were sold in China in April, down 8 percent from last year.

Chinese automakers have made up for the domestic shortfall by shipping abroad. Between January and April, 1.4 million EVs and PHEVs left the country for export markets, more than double the same period in 2025. The cars are still being built. They are just increasingly being driven somewhere else.

Only a few years ago, big spending on EV production made sense to many automakers. It’s why Honda was so willing to commit to its CA$15 billion (about US$10.8 billion) project in Alliston, Ontario, Canada. Now, it’s parking that program indefinitely. Hybrids that are already in production will continue rolling out of the factory, but the EV side of the business is officially on hold.

Honda Global CEO Toshihiro Mibe announced the change in plans during a press briefing on Thursday. The facility was originally pitched as Canada’s first fully integrated EV ecosystem, combining vehicle assembly and battery production under one ambitious umbrella. At one point, it was expected to create roughly 1,000 new jobs and produce up to 240,000 EVs annually.

Read: The Next Honda Civic Is Getting Lighter, Sharper, And More Hybrid

Mibe said the company plans to spend the next three years restructuring its automobile business while redirecting resources toward hybrid vehicles. As we’ve reported, demand for hybrids has remained strong while EV growth has softened domestically. Honda delayed the project only last year, saying it would revisit market conditions before making a final call. Now, “pause” has become “indefinite suspension.”

The timing makes sense despite it also being less than ideal. According to CTV News, Honda posted a $2.7 billion loss, its first full-year loss on record, with the company pointing toward high EV-related costs and changing U.S. policy. Under President Donald Trump’s administration, EV incentives have been rolled back, and emissions regulations loosened, altering the economic math for automakers betting heavily on battery-powered vehicles.

At the same time, production of the Civic and CR-V at the Alliston plant will continue. In 2025 alone, Honda built around 400,000 vehicles in Canada, including approximately 198,000 Civics and 202,000 CR-Vs. More than 60 percent were hybrids.

Honda stressed that no current jobs are affected and no government money had actually changed hands despite roughly CA$5 billion in pledged support from federal and provincial governments. No doubt, this move will have implications for Honda for years to come. At least, for the time being, factory workers aren’t affected.

Geely is officially heading to Canada, though don’t bother looking for the brand name at a car dealership strip north of the border just yet. The Chinese brand’s access to the Canadian market comes through its Lotus subsidiary, which sent 18 Eletre SUVs to North America on May 7.

This isn’t the first time China-built Lotus cars, or China-built cars of any brand, have been offered in Canada. Polestar, Lotus, and others previously sold vehicles that originated in the Asian country. But the 18 Eletres will be the first to hit Canada’s roads since a trade deal between the two countries was struck at the beginning of the year.

More: Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop

Imports from China effectively ceased after 2024 when then prime minister Justin Trudeau followed US president Joe Biden’s lead by slapping a 100 percent tariff on Chinese EVs, and that was on top of the 6.1 percent levy previously applied.

In retaliation, China applied tariffs on canola that brought Canada’s agricultural industry to its knees. Canola brings billions of dollars into the Canadian economy every year, so it’s no surprise that new prime minister Mark Carney was motivated to strike a deal, even as North America’s domestic automakers – which also form a large part of Canada’s economy – begged him not to.

Small Import Numbers for Now

Under the terms of the new trade deal, Canada will allow just 49,000 EVs in from China with a tariff rate of 6.1 percent in year one, rising to 70,000 in year five. In return, and in addition to relaxing tariffs on canola, China agrees to ease duties on Canadian steel and aluminum. But the trade truce also opens the door to Chinese brands building cars in Canada.

Lotus hasn’t revealed the exact mix of Eletre specs currently heading across the Pacific, but the brand’s Canada retail site currently only lists three trims based around the same 603 hp (611 PS / 450 kW) powertrain and priced between $119,900 CAD ($87,600 USD) and $139,900 CAD ($102,200 USD). Other countries also get a 905 hp (918 PS / 675 kW) version.

Hybrid Is A Recent Addition

Both are purely electric, though Lotus has reacted to a less-than-buoyant luxury EV market (and a really terrible North American one) by revealing a new Eletre hybrid. Powered by a 2.0-liter petrol engine and two electric motors making a combined 933 hp (946 PS / 696 kW), it was unveiled in China at the beginning of 2026, and is expected to be rolled out to Western markets later this year.

Lotus isn’t the only company rushing to take advantage of the new trade terms, which Canada’s government originally touted as a way to bring more affordable EVs to the country and help the nation meet its climate goals. Geely is making noises about bringing its own brand, as well as others, such as Zeekr, to Canada. BYD and Chery’s cars have been spied on North American roads, and Tesla is preparing its first batch of Chinese-built Model 3s for Canadian drivers, Drive Tesla Canada reports.

Lotus

Tesla has never been known for offering particularly exciting or flamboyant paint schemes, generally opting for subtlety over pizzazz. However, the Model 3 and Model Y have just been updated with two new shades of blue in the United States, and both look superb.

The first new color is dubbed Marine Blue, and it’s available for the Premium Rear-Wheel Drive and Premium All-Wheel Drive versions of the Model 3 and Model Y. Marine Blue is a deep shade that replaces Deep Blue Metallic, which was brighter and a little more eye-catching.

Read: Americans Pay $37K For The Cheapest Tesla, Canada Got A Chinese One For $29K

As before, those shopping on a budget and looking to buy the entry-level Rear-Wheel Drive or All-Wheel Drive versions of the Model 3 or Model Y don’t get this new color and still only have Stealth Grey, Pearl White Multi-Coat, and Diamond Black to choose from.

In the US, Marine Blue adds $1,000 to the price of applicable Model 3s and Model Ys. In Canada, it costs CA$1,300 (US$940).

Exclusive Performance Color

The second new color introduced by Tesla is Frost Blue Metallic. It’s exclusive to the Model 3 Performance and Model Y Performance. This isn’t the first time this color has been offered by Tesla, as it was previously available on the Model S and Model X before those models were discontinued. Of all the colors that Tesla offers, Frost Blue Metallic might be our favorite, alongside Ultra Red.

What’s more, Frost Blue Metallic is a no-cost option in the US. It’s also been launched for the Model 3 Performance in Canada, though it’s not yet clear whether it will be added to the Model Y Performance locally.

Worried that automakers like Tesla could vacuum up the bulk of its low-tariff Chinese EV quota in one gulp, the Canadian government is reportedly rethinking how to dole out the import permits before they all end up in one company’s hands.

Under Canada’s new trade arrangement with China, up to 49,000 China-built EVs can be imported each year at a slashed 6.1 percent tariff, a steep drop from the punishing 100 percent duty. The first batch of 24,500 permits has been on the table since late March and is supposed to stay available through August 31, handed out on a first-come, first-served basis.

Read: Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop

According to Bloomberg, not a single permit has actually been issued yet. That window is about to get crowded, though, because Tesla just confirmed it will start selling a Chinese-built Model 3 in Canada at a sharply lower price. The new entry point is CA$39,490 before destination, roughly US$29,007, which guts the old floor set by the Model 3 Long Range AWD at CA$79,990, or about US$58,700.

Canada Wants Equitable Access For All Chinese Brands

In addition to Tesla, through its Volvo and Polestar brands already operating in Canada, may also be positioned to secure part of the initial allocation. Once the second half of the 49,000 permits becomes available after August 31, officials may revise the system and assign specific reduced-tariff allocations to individual automakers, giving more brands access to the program.

These brands could include newcomers to the Canadian market, such as BYD and Chery. According to unnamed officials, the quota system may eventually expand to favor companies that establish operations in Canada, including local assembly facilities.

News of these potential changes comes just after it was revealed firms including BYD, Cheyr, and the Geely-owned Zeekr brand have launched a hiring spree across Canada, eager to quickly set up shop and start selling their vehicles locally.

The floodgates are creaking open in Canada. Just as Tesla relaunched its Chinese-built Model 3 in the country, several of China’s most aggressive automakers are putting the pieces in place to follow it through the door. Geely, Chery, and BYD are all moving on the Canadian market.

As part of its preparations, Chery has brought two SUVs from its Jaecoo brand to Toronto, equipped with Ontario manufacturer license plates. Autonews Canada identified the vehicles as Jaecoo E5s, an all-electric SUV that starts at about $37,000 in Australia, where the currency is roughly at parity with the Canadian dollar.

While these vehicles are thought to be in Canada only temporarily, their appearance comes shortly after the automaker sent almost two dozen local dealer representatives to the Beijing Auto Show, giving them a firsthand look at the Chinese market.

Read: Americans Pay $37K For The Cheapest Tesla, Canada Got A Chinese One For $29K

It’s not just Chery that’s making important moves in Canada. According to a report from last month, BYD plans to open 20 sales locations this year. The company reportedly intends to work with local partners to establish those stores. It’s also said to be actively considering building its own factory in Canada, or perhaps acquiring one from an established brand.

Zeekr Gears Up

In the not-too-distant future, Canadians could have several new models from the Geely Group to choose from. One of the most exciting brands prepping for a local launch is Zeekr, with confirmation that it recently began hiring for seven senior-level positions in late April, all based in Toronto and including positions in sales, legal, marketing, and aftersales. The hiring push also includes product and network development roles.

Geely is also looking to hire someone to serve as Zeekr’s head of network development, responsible for evaluating dealer business plans and establishing a dealer operations guide.

The rush for Chinese brands to launch in Canada comes just months after the two nations signed an important new trade deal. Through this deal, tariff rates for 49,000 EVs imported from China will be slashed from 100 percent to just 6.1 percent. Importantly, the quota of 49,000 eligible vehicles will be allocated on a first-come, first-served basis, meaning automakers need to act quickly. Only 24,500 permits will be issued in the first six months of the program.

Honda’s electric future in North America just took its second major hit in as many months. The company is now hitting pause on plans for a massive EV and battery plant in Canada, and it might not restart anytime soon.

The project, originally announced in 2024, was going to be huge, with $15 billion CAD ($11 bn USD) earmarked for a new factory in Alliston, Ontario. But Honda has decided to shelve the plan indefinitely while it reassesses the market, Nikkei Asia reports.

Related: Honda’s $15.9 Billion EV Disaster Just Delayed The Next Accord, Odyssey, And MDX

It’s not hard to see why the plans collapsed. EV demand in the US isn’t where Honda expected it to be, and that’s forcing a rethink. Instead of going all in on electric, the company is doubling down on hybrids, which are selling strongly right now.

Policy changes haven’t helped either. The removal of federal EV incentives in the US has made electric cars more expensive overnight, while relaxed efficiency rules have reduced the urgency for automakers to push EVs hard. There’s also the issue of tariffs and trade uncertainty between the US and Canada, which adds another layer of risk to any long-term investment.

“American tariffs and changes to US domestic policies are creating real pressures for automakers, prompting some to delay or scale back investments in electric vehicle and battery projects,” Industry Minister Melanie Joly told Canada’s CTV News.

Already Delayed

Honda had already delayed the Alliston EV project once, pushing the timeline for the car plant and related battery plant back by two years in May of 2025, despite having already acquired the land and locked in financial help from Canada. Now it’s taking things further by putting everything on ice while it watches how the market evolves, though it will still build the Civic and CR-V at its existing Alliston plant that was opened in 1986.

Multiple Future EVs Scrapped

The shift in powertrain philosophy is already showing up in Honda’s new EV product plans. The company is winding down the Prologue EV, which it co-developed with GM, and earlier this year scrapped three exciting new Honda and Acura electric cars and SUVs destined for North American roads, even though they were in the final stages of development. Not long after that, Honda and Sony confirmed they were abandoning their plans to launch EVs under the Afeela brand.

Instead of EVs, Honda will focus on hybrids in North America, which are gaining popularity with buyers, and extend the life of existing models to save cash. That doesn’t mean Honda is abandoning EVs completely. It still has flexible production lines in Ohio that can build gas, hybrid, or electric models depending on demand, having spent $1 billion to upgrade the site. But for a while at least, fully electric models won’t be part of Honda’s future in the US or Canada.

Honda

As expected, Tesla has become the first EV maker to begin selling Chinese-made models in Canada after the two countries finalized a major trade deal earlier this year. It’s good news for Canadian car buyers, who now get access to Tesla models priced well below their American counterparts. In fact, it’s the cheapest Tesla EV ever sold in North America.

Thanks to the new trade deal, up to 49,000 EVs built in China can be imported into Canada at a reduced tariff rate of 6.1 percent, down from the 100 percent tariff imposed in 2024. Canadian officials began issuing permits for the first 24,500 vehicles in March, and Tesla moved quickly to capitalize.

Read: Canada Could Give China’s Biggest Carmaker A Backdoor Into The US Market

By importing from China, Tesla has reintroduced the entry-level Model 3 Premium RWD to Canada. It is priced from just CA$39,490 before delivery, or around US$29,007 at current exchange rates, undercutting the most affordable Model 3 in the US, the standard RWD model that starts at US$36,990 before taxes and delivery fees. The Shanghai-spec Model 3 has a quoted driving range of 463 km (288 miles) and can go from 0 to 100 km/h (62 mph) in 5.2 seconds.

Before the deal took effect, the most affordable Model 3 available in Canada was the Long Range AWD shipped up from Fremont, California, with a starting price of CA$79,990 (US$58,700). It isn’t a spec-for-spec comparison, but Tesla has effectively cut its Canadian entry point in half overnight.

Performance Gets A Price Cut

Canadian buyers can also order the Model 3 in Performance guise, now priced from CA$74,990 (US$55,050). That marks a 17 percent drop from CA$89,990 (US$66,070), bringing the Canadian price roughly in line with the US$54,490 sticker American buyers pay for the same trim. Tesla has not confirmed where it will source Model 3 Performance models for the Canadian market, though reports suggest Fremont remains the likely origin.

The only downside of Tesla now importing some Model 3s from China is that these models do not qualify for Canada’s Electric Vehicle Affordability Program (EVAP) rebate, valued at $5,000, according to Drive Tesla.

It remains unclear how many of the initial 24,500 permits Tesla will lock down, though Canadian officials have confirmed they’re being issued on a first-come, first-served basis. Unless rivals like Volvo and Polestar move quickly to get their own Chinese-built EVs across the Pacific, Tesla looks poised to walk away with the lion’s share.

Bipartisanship is rare in Washington, but there’s one issue that Democrats and Republicans can seemingly agree on. We’re talking about the threat of cheap Chinese cars, which are slowly spreading across the globe.

The Biden and Trump administrations have setup a series of roadblocks including huge tariffs and a ban on connected vehicles, but some in Congress want even more action. As a result, dozens of House Democrats sent President Trump a letter expressing “significant concern” with his remarks “about allowing Chinese automakers access to the United States market.”

More: Chinese Cars Get Cheaper And Better, So U.S. Automakers Want Them Banned Even If They’re Made Here

The letter came in response to a speech Trump made at the Detroit Economic Club in January, where he said if Chinese automakers “want to ​come in and build a plant and hire you and hire your ​friends and ⁠your neighbors, that’s great, I love that.”

While those remarks were made months ago, the letter was apparently sent now because Trump is set to meet Chinese President Xi Jinping next month. Democrats apparently fear the President could give Chinese automakers the green light in exchange for a possible trade deal or agreement.

Getting back to the letter, it urged Trump to “take any and all decisive action necessary” to prevent Chinese automakers from gaining access to the United States. Signers went on to say “any effort to lower barriers for Chinese automobiles or otherwise facilitate their entry into the U.S. market would pose a direct threat to American manufacturing, workers, and national security.”

It went on to claim the American automotive industry supports approximately 10 million jobs and accounts for five percent of the gross domestic product. The letter then said the “Chinese auto industry does not compete on a level playing field” as it is “driven by a state-directed strategy to dominate global markets through government subsidies, below-market financing, and non-market behavior across the supply chain.”

It went onto suggest the entry of Chinese vehicles into Canada and Mexico could create a “backdoor into the United States under the United States-Mexico-Canada Agreement.” The letter added, “Chinese-owned or controlled vehicles, regardless of where they are assembled, must not be permitted to enter our market through USMCA or any other mechanism.”

That’s a little awkward for Polestar and Volvo, but the message called for Trump to “maintain and strengthen existing tariffs and trade enforcement measures on Chinese automakers and automobiles” as well as prevent them from establishing manufacturing operations in America. Democrats went on to ask that vehicles produced by Chinese-owned or controlled entities in Canada or Mexico be explicitly prohibited from qualifying for USMCA benefits or entering the United States. On top of that, they want the government to “accelerate and expand restrictions on Chinese-connected vehicle technologies.”

Reuters reached out to the White House and was told, “While the administration is always working to secure more investment into America’s industrial resurgence, any notion that we would ever ​compromise our national ​security to do so ⁠is baseless and false.”

For their part, the Chinese Embassy called for officials to “stop overstretching the concept of national security, cease discriminatory and exclusionary measures, and provide a fair, transparent, and non-discriminatory business environment.”

However, that seems unlikely as fear of Chinese automakers is one thing that almost all politicians can get behind.

Blue Bird Corporation announced its pending acquisition of the remaining 50-percent equity interest in Micro Bird, a joint venture with Canadian bus manufacturer Girardin Minibus. ​The $198.2 million deal, which values Micro Bird at $429.6 million, is expected to close by the end of the second quarter, pending regulatory approval and customary closing conditions. ​

The OEM confirmed Micro Bird President Eric Boule and his current management team continue to oversee day-to-day operations.

The Micro Bird brand originated in the mid-1970s, when Blue Bird introduced its first Type A school bus built on a cutaway van chassis. Blue Bird entered a supply agreement with Girardin Minibus in 1992 to build the Micro Bird in Quebec. The most recent joint venture between Blue Bird and Girardin was signed in 2009, which created Micro Bird, Inc.

The transaction announced Tuesday is funded through a combination of 70-percent stock and 30-percent cash. It includes the $16.5 million purchase of Micro Bird’s new manufacturing facility in Plattsburgh, New York and the transfer of its OEM service parts inventory for $400,000, according to a company presentation on the deal strategy and structure. ​Blue Bird said it plans to issue 2.7 million shares to fund the stock portion and use $154.2 million in cash for the remainder. ​

Blue Bird said the acquisition is expected to enhance the company’s market share in the K-12 student transportation industry by expanding its product portfolio to include a comprehensive lineup of Type A, C and D buses powered by diesel, gas, propane, and electric powertrains. ​The deal will also double Micro Bird’s addressable market in the U.S., thanks to its compliance with Buy America requirements, and strengthen Blue Bird’s presence in Canada. ​

The transaction is projected to be immediately accretive to earnings, with an estimated 8.2 percent increase in earnings per share in fiscal year 2026. ​Blue Bird’s pro forma revenue is expected to grow from $1.5 billion to $1.9 billion, while adjusted EBITDA is forecasted to increase from $225 million to $250 million. The company said it anticipates long-term revenue growth to reach $2.5 billion by 2030, with an EBITDA margin exceeding 15 percent. ​

Micro Bird, known for its high-quality school, commercial and electric buses, is well-positioned for long-term growth. ​Blue Bird said the acquisition will enable it to leverage Micro Bird’s expertise in electric vehicle technology, streamline development and expand into adjacent markets such as commercial and specialty vehicles as well as drive engineering efficiencies, enhance market share, and deliver value to shareholders through profitable growth and stock buybacks. ​

This article is developing.

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VANCOUVER, Canada,  – GreenPower Motor Company Inc. (Nasdaq: GP) (“GreenPower” and the “Company”), a leading manufacturer and distributor of all-electric, purpose-built, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector, today announced that the Company has received formal notice from The Nasdaq Stock Market LLC (“Nasdaq”) confirming that the Company has regained compliance with Nasdaq Listing Rule 5550(b)(1), the “Equity Rule,” and otherwise satisfies all applicable criteria for continued listing on The Nasdaq Capital Market.

“Over the past few months GreenPower has completed a series of transactions including raising new capital with an equity offering of Series A Convertible Preferred Shares for up to $18 million, term loans of $5 million and a new banking relationship with CIBC including a line of credit and term loan. In addition, the Company exchanged $7 million of related party loans for convertible debentures and $3 million of related party loans for Series B Convertible Preferred Shares,” said Fraser Atkinson, CEO of GreenPower. “These transactions have helped the Company regain full compliance with the Nasdaq listing criteria as well as with the execution of our strategic goals.”

Notwithstanding the Nasdaq compliance determination, the Company will remain subject to a Panel monitor for one year. If, within that one-year monitoring period, Staff finds the Company again out of compliance with the Equity Rule that was the subject of the hearing, the Company will be subject to a delisting determination and will not have the opportunity to present a compliance plan for the Staff’s consideration. However, the Company will be afforded the opportunity to request a hearing before the Hearings Panel, and the hearing request will automatically stay any suspension or delisting action pending the conclusion of the hearings process and the expiration of any additional extension period granted by the Panel following the hearing.

The Company’s common stock will continue to trade on Nasdaq under the ticker symbol “GP.”

About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo van and a cab and chassis. GreenPower employs a clean-sheet design to manufacture all-electric vehicles that are purpose built to be battery powered with zero emissions while integrating global suppliers for key components. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. For further information go to www.greenpowermotor.com

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VANCOUVER, Canada  – GreenPower Motor Company Inc. (Nasdaq: GP) (“GreenPower” and the “Company”), a leading manufacturer and distributor of all-electric, purpose-built, zero-emission medium and heavy-duty vehicles serving the cargo and delivery market, shuttle and transit space and school bus sector, today reported revenue of $8.5 million and net income of $4.2 million as a part of its financial results for the period ended December 31, 2025.

“Despite significant headwinds in the EV sector in general, GreenPower has made substantial strides with its transition from building EVs on spec., to a production strategy driven by building EVs to customer orders.” said Fraser Atkinson, GreenPower Chairman and CEO. “This transition has required recapitalization of the Company, retooling our manufacturing, managing inventory, and obtaining sources of production funding.”

“GreenPower is very excited about the excellent progress in the deployment of all-electric, purpose-built school buses during the last quarter in New Mexico; Continuing to perform on the state sponsored, two-year, zero emissions school bus pilot project.” said Brendan Riley, President of GreenPower. “This project uses the compelling West Virginia pilot project as its model but is focussed on the specific needs of New Mexico school districts where there will be challenges on deploying in both city and rural settings, challenges with charging infrastructure and operating the school buses in extreme cold weather at high elevations.”

Third Quarter 2026 Highlights
Generated revenues of $8.5 million in the third quarter of the 2026 fiscal year compared to $7.2 million for the third quarter in the previous year. Revenue was generated from the sale of vehicles, parts, leases and deferred income. Gross profit on the sale of vehicles was approximately 28%.

Total sales, general and administrative costs of $2.4 million in the third quarter compared to $5.2 million for the third quarter in the previous year representing a significant reduction in the Company’s recurring expenses. Excluding non-cash items, the sales, general and administrative costs in the current quarter were less than $2 million.

Working capital of more than $5 million and increased cash from the beginning of the fiscal year.

During the quarter the Company undertook the management of the New Mexico All-Electric, Purpose-Built, Zero-Emission School Bus Pilot Program. The contract with the state of New Mexico provides funding of more than $5 million for the deployment of GreenPower’s all-electric Type A Nano BEAST, Type A Nano BEAST Access, Type D BEAST and Type D Mega BEAST school buses, charging infrastructure and management of a pilot project in the state.

During the quarter the Company raised gross proceeds of $1,120,050 from the issuance of Series A convertible preferred shares (the “Series A shares”) with a stated value of $1,179,000. The initial tranche was comprised of 754 Series A shares issued pursuant to an effective shelf registration statement and 425 Series A Shares issued in a concurrent private placement. The Company and investor agreed that a follow-on tranche of 926 Series A Shares with a stated value of $926,000 and purchase price of $879,700 will be issued at a later date. The institutional investor has the right to acquire and the Company has the right to issue additional Series A Shares in tranches of up to $2 million, subject to certain terms and conditions, to a total of up to US$16 million

Subsequent to the end of the quarter GreenPower completed several transactions to recapitalize the Company. The Company closed on two term loans for a total of $5 million, closed on the new banking relationship with CIBC including a line of credit and Term Loan, paid out the existing bank line of credit, exchanged $7 million of related party loans for convertible debentures and exchanged $3 million of related party loans for Series B Convertible Preferred Shares.

For additional information on the results of operations for the period ended December 31, 2025 with the financial statements and related reports posted on GreenPower’s website as well as on SEDAR Plus or on EDGAR.

About GreenPower Motor Company Inc.
GreenPower designs, builds and distributes a full suite of high-floor and low-floor all-electric medium and heavy-duty vehicles, including transit buses, school buses, shuttles, cargo van and a cab and chassis. GreenPower employs a clean-sheet design to manufacture all-electric vehicles that are purpose built to be battery powered with zero emissions while integrating global suppliers for key components. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. For further information go to www.greenpowermotor.com

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New Poll: American Voters Support Federal Investments in Electric Vehicles Broad, Bipartisan Support for EV Investments and Incentives that Lower Costs, Expand Access, and Help the U.S. Beat China in the Race for Auto Manufacturing WASHINGTON, D.C. – A new bipartisan national poll conducted by Meeting Street Insights and Hart Research finds broad public support …

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