Tesla Is Suing Ontario Over Cancelled Rebates Program

Tesla files lawsuit against Ontario government over electric vehicle rebate program

Tesla files lawsuit against Ontario government over electric vehicle rebate program

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.

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

Neither Tesla nor the Ontario government immediately responded to AFP's requests for comment.

Tesla says hundreds of purchasers of its cars were left hanging when the program ceased in July and was no longer eligible for the rebate.

Tesla, which confirmed it filed a lawsuit with the Ontario Superior Court on Thursday, said in its application for judicial review that the Ministry of Transportation excluded the electric auto maker from its transition plan after it scrapped the rebate program.

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The company is asking the court to overturn the decision excluding Tesla customers from getting the rebate. In July, the government said the rebates would be honored 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 has called for the application to be heard on "an urgent basis".

"The decision has already inflicted substantial harm on Tesla Canada in the form of lost sales and the creation of an impression among Ontarians that Tesla Canada may be singled out for future arbitrary treatment under the law", the company's statement said.

The electric vehicle maker also said that Transportation Minister John Yakabuski's comments in the legislature on July 26, when he stated that anyone who purchased or ordered a vehicle "other than Tesla" would receive a rebate, made the "discriminatory intentions even more clear".

None of Tesla's claims has been proven in court.

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