Tesla Files Lawsuit Against Ontario Government Over Canceled Electric Vehicle Rebate Program

Darnell Taylor
August 19, 2018

Tesla's Canadian arm is suing the government of Ontario after the province canceled its Electric and Hydrogen Vehicle Incentive Program (EHVIP) back in July, according to the CBC.

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.

Neither Tesla nor the Ontario government immediately responded to AFP's requests for comment.

Upon assuming power last July, Premier Doug Ford's conservative government announced the end of several green energy programs, including several thousands of dollars in rebates for electric vehicle buyers.

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Tesla has agreed to refund the deposit to some buyers who said they cannot afford the purchase of a $71,000 auto without the maximum government rebate of CAN$14,000. As a sop to all those who had purchased an EV, the transition plan mentioned earlier allowed the incentives would be honoured up to September 10 for vehicle on order from a dealership, but they had to be delivered and registered by that date. Tesla received one of those letters, it said in the application, but then received a notice that the sender "attempted to "recall" it".

"The decision has already inflicted substantial harm on Tesla Canada in the form of lost sales and the creation of an impression among Ontarians that Tesla Canada may be singled out for future arbitrary treatment under the law", says the statement filed by Tesla Aug. 10.

The electric vehicle maker also said that Transportation Minister John Yakabuski's comments in the legislature on July 26, when he stated that anyone who purchased or ordered a vehicle "other than Tesla" would receive a rebate, made the "discriminatory intentions even more clear".

None of the claims has been proven in court.

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