Transport Canada says the popular battery-operated vehicle was removed from the eligibility list for the federal zero-emission vehicle rebate in late November.
The carmaker just raised the base price for the Model 3 to $59,990, well above the $45,000 qualifying price to get the $5,000 rebate.
In 2019 the company lowered the price to just under $45,000 to make it eligible for the rebate.
Since the rebate program began in May 2019, nearly 35,000 Teslas qualified for it, more than twice as many as the second-place Toyota Prius.
More than half a billion dollars has been spent on EV rebates in the last three years, of which more than one-third went to Teslas.
By Mia Rabson