Tesla Motors Canada sues Ontario over canceled electric vehicle rebate

The Canadian arm of Tesla, Inc., is taking the Ontario government to court, claiming it has been treated unfairly in the cancellation of a program providing rebates to residents who bought electric vehicles.

In an application for judicial review, Tesla Motors Canada says the decision by Premier Doug Ford’s government to halt the program in July left hundreds of its customers no longer eligible for rebates they expected to get when they ordered their vehicles.

“The decision has already inflicted substantial harm on Tesla Canada in the form of lost sales and the creation of an impression among Ontarians that Tesla Canada may be singled out for future arbitrary treatment under the law,” says the statement filed Aug. 10.

In July, shortly after coming to power in Ontario, the Progressive Conservative government under Doug Ford canceled a slew of green energy initiatives, including an Electric and Hydrogen Vehicle Incentive Program that provided rebates of up to C$14,000 ($10,640) for people who bought electric cars.

This story is developing.