Tesla files lawsuit against Ontario government over electric vehicle rebate program

Tesla Inc. and SpaceX founder Elon Musk speaks at a press conference at the Kennedy Space Center in Cape Canaveral Fla. Feb. 6 2018. The Canadian arm of Tesla Inc. is taking the Ontario government to court claiming it has been treated unfairly in

According to court documents filed in Toronto, Tesla is suing the Ontario government over the cancellation of the electric vehicle incentives in the province.

NDP economic development critic MPP Catherine Fife said in an email that Ford's "reckless decision" to cancel Ontario's cap and trade program and thus remove the funding for the electric vehicle rebates has had a negative impact on the province.

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.

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.

Toronto teacher Kurtis Evans, 38, said he was planning to sell his current vehicle - and was counting on receiving the maximum $14,000 rebate - to be able to afford the $71,000 price of the auto he ordered in June.

It claims Tesla was singled out.

Tesla has called for the application to be heard on "an urgent basis". For those not au courante on Tesla business models, it has no franchised dealerships and owns all its outlets, therefore it contends that Model 3s already on the ground should not be excluded from the government's transition plan.

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".

The company added "the decision has also already inflicted substantial harm on Tesla Canada".

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