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Tesla to sue Ontario government over cancellation of rebate on EV

Author : Paroma Bhattacharya | Published Date : 2018-08-20 

Tesla, the electric automaker will reportedly be taking the Ontario government to court over the cancellation of an electric vehicle incentive program that the Canadian province had previously promised.

Shortly after coming to power in July 2018, the Progressive Conservative government of Ontario led by Doug Ford canceled a number of green energy initiatives. Among these initiatives was the Electric and Hydrogen Vehicle Incentive Program which permitted rebates of C$14,000 to people buying electric cars.

Though the government made provisions for people who had already bought or ordered electric cars, the Tesla document filed in the court alleges that the transition program was intentionally structured to put Tesla at a disadvantage and to be left out of rebates. The transition program specified that rebates will only be permitted to customers buying electric vehicles from franchised dealerships. Since Tesla does not have franchised dealerships and sells directly to customers, the company claimed that it has been arbitrarily excluded from the rebate program.

The court filings by Tesla reportedly state that the targeting of Tesla and its customers is unjustified and that the company had been given no chance or warning to provide submissions or input. It further states that the decision should be quashed as Tesla Canada received no reason for such an exclusion.

Reliable sources cite that a spokesperson for Tesla confirmed the lawsuit and the Ontario Ministry of Transportation spokesperson also admitted being aware of the application for judicial review. Both of them however refused to comment any further.

Meanwhile apprehension about the rebate cancellation has put Tesla customers at unease. Many customers who had already booked Tesla electric vehicles have started to have second thoughts about actually taking the delivery of the vehicle. Customers have been citing that the C$14,000 rebate was a substantial amount for them and without the rebate the vehicle becomes quite unaffordable. In addition, anxiety regarding whether Tesla will refund the booking amount looms large.

About Author

Paroma Bhattacharya

Paroma Bhattacharya

Paroma currently works as a content developer for AlgosOnline. Fortified with a post-graduation degree in Journalism and Mass Communication, she delved head long into a writing career, creating resourceful and information enriched content in diverse fields. Apart from being a compulsive reader she also loves to cook, paint and travel

She can be contacted at- p[email protected] | https://twitter.com/paromab1

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