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Tesla (NASDAQ:TSLA) is facing fresh challenges in Canada as Toronto has decided to exclude its vehicles from financial incentives for taxis and ride-sharing services, Reuters reported.
The move comes amid ongoing trade tensions between Canada and the U.S. Toronto Mayor Olivia Chow announced that the city is continuing its push for electric vehicle adoption by offering reduced licensing and renewal fees for vehicles used in ride-hailing services.
However, Tesla models no longer qualify for these benefits due to the trade dispute, she said. The restriction is expected to remain in place until trade relations improve. While the financial impact on Tesla is relatively small, the exclusion signals broader struggles for the brand in Canada, which could pose a longer-term challenge.
Tesla shares fell in premarket trading and the stock, which traded as low as $222.15 earlier this month, has dropped significantly from its December high of $488.54.
This article first appeared on GuruFocus.