Published: Sun, August 19, 2018
Economy | By

Tesla sues Ontario for pulling plug on electric auto rebates

Tesla sues Ontario for pulling plug on electric auto rebates

This version of the story corrects figure in second paragraph to C$14,000 from C$4,000) Electric vehicle-maker Tesla Inc (TSLA.O) is taking the Ontario government to court over the Canadian province's cancellation of an electric vehicle incentive program, according to documents filed in court on August 10.

Tesla taking the Ontario government to court over its decision last month to cancel incentives for purchases. It claims that Tesla was singled out and that purchasers of other brands will still get rebates during a transition period.

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.

The issue arose when Ontario Premier Doug Ford's government made a decision to cancel a rebates program which offered money-back for consumers of electric vehicles. But it ended immediately for those who bought cars directly from the manufacturer, in this case Tesla.

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. The program initially offered rebates of up to $14,000 on eligible vehicles.

"My wife and I are still not sure if we are going to take delivery without the rebate. we are not millionaires", he said, adding that he fears losing a non-refundable deposit if he cancels the order.

Ontario Premier Doug Ford canceled the rebate program on July 11th, shortly after the government scrapped the cap-and-trade program that funded the incentives.

Overall vehicle sales in Canada grew 4.8 per cent to a record 2.08 million a year ago.

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