Tesla Motors Canada suing Ont. government over end of EV rebates

Tesla files lawsuit against Ontario government over electric vehicle rebate program

Customers who have been waiting for Tesla Model 3 cars to be delivered say the Ontario government move has them rethinking their purchase.

United States electric automaker Tesla has sued the government of Ontario, Canada, after the province scrapped a rebate initiative for purchases of electric cars, Canadian media reported Thursday.

"On July 11, 2018, the Minister of Transportation cancelled a program that provided Ontario customers with rebates for the purchase of electric vehicles", reads the court document.

Customers who ordered their vehicle before July can still benefit from the program until mid-September - except for hundreds of Tesla customers, according to the firm.

As has been reported here, the newly-elected Conservative provincial government cancelled Ontario cap-and-trade program in a quest to fulfill premier Doug Ford's promise to reduce the price of gasoline by as much as 10 cents a litre and with it, "all programs funded out of cap-and-trade carbon tax revenues".

The rebate was worth up to C$14,000 ($16,150).

More news: Tottenham Hotspur vs. Fulham - Football Match Report

Tesla alleges that since it doesn't use third-party dealers, the policy change discriminates against the firm.

The problem, says the application, is that the Ontario government sees Tesla Canada as a subsidiary of the company's manufacturing arm whereas the company itself contends that Tesla Canada is nothing more than a dealership network. The suit wants the exclusion removed entirely.

The suit claims that Tesla Canada was removed from a program where buyers of some electric vehicles could still get the rebates during a transition period to end the bonuses.

The company added "the decision has also already inflicted substantial harm on Tesla Canada".

The Drive has reached out to Tesla for clarification and further comment and will update this story when we get a response.

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