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Tesla files lawsuit against Ontario government

Tesla files lawsuit against Ontario government

Tesla, Inc. will sue the Ontario government over what it calls unfair treatment in the cancellation of a program providing rebates to residents who bought electric vehicles.

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.

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

A spokesman for Ontario's Ministry of Transportation said the province was aware of the application for judicial review filed by Tesla Canada, but declined to comment as the matter is before the court.

Tesla said that it received no reasons for its exclusion, "which was an arbitrary and entirely unreasonable decision, and should be quashed".




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

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. The lawsuit alleges "substantial harm" and lost sales as a result of the decision.

As has been reported here, the newly-elected Conservative provincial government cancelled Ontario cap-and-trade program in a quest to fulfill premier Doug Ford's promise to reduce the price of gasoline by as much as 10 cents a litre and with it, "all programs funded out of cap-and-trade carbon tax revenues".

It's unclear what Tesla Canada's policy is on refunding deposits to customers who may no longer be able to afford a Model 3 without the rebate, but Global News apparently spoke to one Mississauga man who was able to get his money back.

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


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