Tesla sues Ontario government, alleging customers denied incentives

Tesla Motors Canada is suing the Ontario government, alleging it has suffered "substantial harm" and lost sales amid the cancellation of an electric vehicle rebate.

Customers of other companies can still qualify for rebates on electric car purchases

Tesla buyers had been able to secure $14,000 incentives from the Ontario government under a recently cancelled program. (Stephen Lam/Reuters)


In mid-July, Ontario Premier Doug Ford scrapped the province's Electric and Hydrogen Vehicle Incentive Program (EHVIP), which was brought in by the previous Liberal government. The program offered rebates of up to $14,000 on qualifying vehicles, so long as they were under $75,000. 



Tesla Canada argues the government "deliberately and arbitrarily" excluded its customers, while providing no warning or the chance to offer any input.

"The Minister of Transportation's decision suddenly left hundreds of Tesla Canada's Ontario customers in the unfair position of no longer being eligible for the rebate they had expected to receive when they ordered their vehicles," the lawsuit states.

"While purchasers of other brands and from other dealers will still receive the rebate during the transition period."


"As this matter is before the courts, it would be inappropriate to comment," said Bob Nichols in an email to CBC Toronto.

Seeking urgent action


However, it claims the Ministry of Transportation later changed the wording to "expressly exclude Tesla Canada and its customers from the transition plan."


Tesla Canada is asking for the lawsuit to be heard urgently.

It's unclear how much the company is seeking, but the lawsuit warns every day the transition plan continues with Tesla excluded, "the unquantifiable and irreparable harm grows."

Funded by cap-and-trade


The EHVIP program was funded in large part by the profits from Ontario's cap-and-trade program, which Ford's government also abandoned this summer. The program set a price on carbon emissions for big polluters.


With files from The Canadian Press


