Published: Sun, August 19, 2018
Finance | By Loren Pratt

Tesla Canada Sues Province of Ontario for Abruptly Cancelling EV Incentive Program

Tesla Canada Sues Province of Ontario for Abruptly Cancelling EV Incentive Program

A 2018 Model X sits on display outside a Tesla showroom in Littleton, Colo., on July 8, 2018.

This version of the story corrects figure in second paragraph to C$14,000 from C$4,000) Electric vehicle-maker Tesla Inc (TSLA.O) is taking the Ontario government to court over the Canadian province's cancellation of an electric vehicle incentive program, according to documents filed in court on August 10.

Is Tesla suing Ontario?

NDP economic development critic MPP Catherine Fife said in an email that Ford's "reckless decision" to cancel Ontario's cap and trade program and thus remove the funding for the electric vehicle rebates has had a negative impact on the province.

The government's decision left hundreds of customers ineligible for the rebates they expected to receive when they initially pre-ordered their Tesla vehicles.

In July, soon after coming to serve in Ontario, the Progressive Conservative government under Doug Ford dropped a large number of efficient power vitality activities, including an Electric and Hydrogen Vehicle Incentive Program that gave refunds of up to C$14,000 ($10,640) for individuals who purchased electric cars.

Tesla alleges that since it doesn't use third-party dealers, the policy change discriminates against the firm. The suit wants the exclusion removed entirely.

Tesla claims it then received an additional letter from the government which "omitted details on how Tesla Canada customers could obtain rebates under the Transition Plan and made clear that (the Ministry of Transportation) had decided specifically to exclude Tesla Canada alone".

The company called the decision "unreasonable and unlawful" and that "it has created the impression that Tesla Canada and its customers will not be treated equally under the law".

A spokeswoman for Tesla confirmed the lawsuit on Thursday but would not comment further.

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