Tesla files lawsuit against Ontario government

19 August, 2018, 12:45 | Author: Regina Silva
  • 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

Elon Musk's Tesla Motors Canada ULC has filed a lawsuit against the Ontario government, alleging it was the subject of "unjustified targeting" when the province cancelled its electric vehicle rebate program last month.

Premier Doug Ford's government cancelled rebates for electric vehicles on July 11, a week after the province ended its cap-and-trade program.

Upon assuming power last July, Premier Doug Ford's conservative government announced the end of several green energy programs, including several thousands of dollars in rebates for electric auto buyers.

The document adds that the Minister of Transportation's decision left hundreds of Tesla Canada customers in Ontario in an "unfair position" of no longer being eligible for the rebate they had expected.

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

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Tesla has agreed to refund the deposit to some buyers who said they cannot afford the purchase of a $71,000 auto without the maximum government rebate of CAN$14,000.

The company is requesting that the court topple the choice barring Tesla clients from getting the discount. 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.

Tesla called the decision "unreasonable and unlawful" and said that "it has created the impression that Tesla Canada and its customers will not be treated equally under the law".

Dealers who handle brands other than Tesla are also unhappy with the sudden cancellation of the rebate program and the brief extension to September, said David Adams, president of the Global Automakers of Canada.

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