Tesla files lawsuit against Ontario government over electric vehicle rebate program

Tesla files lawsuit against Ontario government over electric vehicle rebate program

Tesla summons Ontario Government over cancelled e-vehicle incentive program.as indicated by case filed in court on August 10, electric vehicle manufacturing company - Tesla Inc is prosecuting the Ontario government due to the Canadian province's wiping out of an electric vehicle incentive program.

Tesla is suing Doug Ford's PC government.

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".

In an application for judicial review, Tesla Motors Canada says that now, hundreds of its customers are no longer eligible for rebates which they expected to get when ordering their vehicles.

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".

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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.

The Ontario government didn't immediately return a request for comment, but it also declined to comment to Reuters because the issue is already before the court. The program, introduced by the previous Liberal government, offered rebates of up to $14,000 on eligible vehicles.

Dealers who handle brands other than Tesla are also unhappy with the sudden cancellation of the rebate program and the brief extension to September, said David Adams, president of the Global Automakers of Canada.

Subsidies are generally frowned upon by his members because they distort the marketplace, but the rebates for electric vehicles are seen as providing a balance for the substantial difference in price versus fossil-fuel powered cars, Adams said.

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