The meetings and exchanges, which occurred between 2020 and 2023, are part of a freedom of information document cache requested by Electric Autonomy
Tesla and Ontario officials across multiple government departments met and corresponded about “investment opportunities” dozens of times in the past three years, Electric Autonomy can exclusively reveal.
Documents show that Ontario officials ranging from the Minister of Economic Development, Job Creation and Trade, Vic Fedeli, to the Minister of Energy, Todd Smith, and many other high-ranking individuals were all in regular contact with Tesla “decision makers” — including one exchange that involved Tesla’s CEO, Elon Musk.
“I wanted to forward an article that announces the intention of Canada to subsidize EV battery production,” reads the Dec. 2022 email sent by a commercial officer at the Ontario Trade and Investment Office in Dallas, Tex., to three recipients, one of whom was Musk.
“Just another indication of the commitment of Canada to become a hub for EV production in the future.”
It’s unknown if Musk replied.
All the correspondence is disclosed in documents obtained by Electric Autonomy through a freedom of information (FOI) request regarding Tesla communication between 2020 and 2023 with the Ontario government.
In addition to the records confirming Electric Autonomy’s earlier reporting on Tesla’s increasing interest in Ontario as a manufacturing destination, they also reveal for the first time a glimpse of the government’s efforts to get the Texas-based automaker into Canada.
Ontario pursuing Tesla investment
Of the 150 documents found as part of the FOI request, just 20 were released to Electric Autonomy. Briefing notes and emails made up most of those 20, some of which were heavily redacted.
One document was an email about another exclusive story from Electric Autonomy on Tesla’s interest in manufacturing in Ontario.
However, from the emails (or portions of emails) that are accessible, it’s clear that the Ontario government was eager to attract the electric vehicle maker.
“Ontario is the ideal destination for Tesla, thanks to our world-class automotive supply base with a growing electric vehicle assembly and battery supply chain footprint, reliable clean energy, critical mineral resources, a world-class workforce, and a thriving research and development (R&D) ecosystem,” reads one briefing note from fall 2022 authored by a senior policy advisor for site planning and coordination at the Automotive Battery Office.
Of the several briefing notes included in the document cache, each contains multiple talking points for government officials about why Tesla should expand their operations in Ontario. Reasons include the end-to-end EV battery supply chain, a talented workforce, R&D opportunities with universities, mining opportunities and a competitive manufacturing landscape.
Tesla’s eye on Canada
In addition to Tesla considering an investment in Ontario (perhaps as a manufacturing destination or another area), representatives of the automaker noted they are closely watching other auto sector developments in the province and country.
“The multi-billion-dollar wave of investment by the industry into cathode, battery and EV production in Ontario and Quebec has also been noticed over the past months. We also observed Bloomberg NEF battery supply chain ranking — putting Canada in the #2 spot, behind only China for battery materials processing and battery manufacturing,” reads a Dec. 2022 email from Iain Myrans, national senior manager of public policy and development for Canada at Tesla.
“Ministers Champagne and Fedeli have both been in touch with me regularly to signal that Canada and Ontario will be ready to ensure Tesla gets a competitive and level playing field for any future investments.”
Tesla’s other Canadian activities
Large portions of the documents released by the provincial government as part of the FOI request were redacted.
The Ministry of Economic Development, Job Creation and Trade cited privacy laws as the reason for the redactions. However, the redactions extended to Tesla’s current activities in the province.
Among those so-called proprietary details is information about Tesla’s R&D facilities in Canada. The documents mention the well-known Jeff Dahn Lab, funded by Tesla, at Dalhousie University in Halifax. But the names of the other research locations are blacked out.
Aside from the Dahn lab (which researches lithium-ion battery technology), the government is claiming information about the others is covered by third party privacy laws (“a mandatory exemption for records that would reveal confidential information sent to the ministry by a third party, and which would prejudice their competitive position if released or result in undue loss”).
However, Electric Autonomy has been able to independently verify the location and activities of at least three other Tesla R&D facilities in the country:
The first is a research centre in Dartmouth, N.S., (separate from the Dahn lab) that opened in 2016;
The second is a Mississauga-based research lab that is likely the result of Tesla’s acquisition of battery technology company Springpower International in 2021; and
The third known Tesla R&D operation is in the company’s Markham, Ont., facility that is involved in battery development, factory design, charging infrastructure and battery CNC machine programming.
Future involvement
In the correspondence the government discusses how Tesla is also interested in potential connected and autonomous vehicle research collaborations with “the University of Toronto, the University of Waterloo, Carleton University and the University of Ottawa. [sic] The Ontario Vehicle Innovation Network.”
In FOIed correspondence from November 2021, Myrans writes to Fedeli, “Tesla is particularly supportive of the talent development components of the [auto] strategy. Helping young Ontarians better understand the exciting career opportunities that exist in advanced manufacturing will certainly help build the Ontario workforce needed to achieve your government’s goals. As attracting new talent can take time, we are hopeful that this aspect of the plan will be prioritized for early action.”
Electric Autonomy continues to cover Tesla’s activities in Canada.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
