Tesla takes Ontario government to court over pulled plug on rebates

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

Tesla summons Ontario Government over cancelled e-vehicle incentive program.as indicated by case filed in court on August 10, electric vehicle manufacturing company - Tesla Inc is prosecuting the Ontario government due to the Canadian province's wiping out of an electric vehicle incentive program.

The incentive, which was first introduced by Ontario's former Liberal government, promised rebates of up to $14,000 CAD (or $10,650) on eligible green cars worth up to $75,000 CAD ($57,000 in USA bucks).

In July, the government announced the cancellation of the rebate program but said that incentives would be honoured for vehicles ordered through a dealership if they are delivered and registered by September 10.

In court documents cited by Canadian media, Tesla slammed the "arbitrary" exclusion.

The suit claims that Tesla Canada was removed from a program where buyers of some electric vehicles could still get the rebates during a transition period to end the bonuses.

It wants the provincial government to reverse the decision, which it claims was made without consultation.

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"As this matter is before the courts, it would be inappropriate to comment", Ontario government spokesman Bob Nichols said in an email Thursday.

"Tesla Canada received no reasons at all for its exclusion, which was an arbitrary and entirely unreasonable decision and should be quashed", the filing said.

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

And herein lies Tesla's problem as it sells vehicles directly to customers and not through a dealership as has always been its norm.

The incentives allowed residents to receive rebates of up to about CA$14,000 (about US$11,000) on the purchase of an electric or hydrogen vehicle. The lawsuit alleges "substantial harm" and lost sales as a result of the decision. However, the newly established Ontario premier Doug Ford-the brother of late, former Toronto mayor Rob Ford, abolished the program last month.

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