Corrected: Tesla sues Ontario over cancelled electric vehicle rebate

  • Corrected: Tesla sues Ontario over cancelled electric vehicle rebate

Corrected: Tesla sues Ontario over cancelled electric vehicle rebate

Tesla Inc.is taking the Ontario government to court over its decision last month to cancel incentives for purchases.

Tesla Motors Canada is suing the government of Ontario province over the cancellation of rebates to buyers of electric cars, Canadian media reported Thursday.

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.

Since 2010, the Ontario government had offered incentives to individuals purchasing or leasing hybrid-electric or electric vehicles.

In July, the government said the incentives would be honoured for vehicles ordered through a dealership if they are delivered and registered by September 10, but Tesla sells vehicles directly to customers rather than through a dealership. Tesla's direct-sales model does not include third-party dealers, and thus the automaker believes it's being discriminated against. It wants the court to quash its exclusion. Tesla said that the Ministry of Transportation excluded the electric vehicle maker from its transition plan after it ended the rebate program.

Tesla called the decision "unreasonable and unlawful" and said that "it has created the impression that Tesla Canada and its customers will not be treated equally under the law". Tesla did not immediately return a request for comment, but it confirmed the lawsuit to Reuters while declining to comment further.

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.