Tesla Is Suing Ontario Over Cancelled Rebates Program

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A 2018 Model X sits on display outside a Tesla showroom in Littleton, Colo., on July 8, 2018.

USA electric automaker Tesla has sued the government of Ontario, Canada, after the province scrapped a rebate initiative for purchases of electric cars, Canadian media reported Thursday.

The government of Canada made provisions for individuals who had just purchased or requested cars yet organized the progress program so as to prohibit Tesla, which does not use the franchised dealerships - a "arbitrary" rejection, Tesla claimed in the court file.

"This decision has also already inflicted substantial harm on Tesla Canada in the form of lost sales", said the electric vehicle company.

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It said buyers would still be eligible for the incentive on purchases of cars already on dealer lots, or on vehicles ordered by third-party dealers before July 11 so long as the consumer takes delivery by September 10.

A spokeswoman for Ontario's Ministry of Transportation said the territory knew about the application for judicial review filed by Tesla Canada, yet declined to comment as the issue is under the watchful eye of the court.

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.

It claims that Tesla was singled out and that purchasers of other brands will still get rebates during a transition period.

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It asks the Ontario Superior Court to quash the "arbitrary and entirely unreasonable" decision, adding that the government has given it no reason for its exclusion from the rebate extension.

The Drive has reached out to Tesla for clarification and further comment and will update this story when we get a response.

Doug Ford's Ontario government cancelled the Electric and Hydrogen Vehicle Incentive Program on July 11, shortly after it scrapped the cap-and-trade program that funded the incentives.

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