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article imageCourt rules in favor of Tesla over Ontario canceling EV rebates

By Karen Graham     Aug 28, 2018 in World
Toronto - An Ontario court has ruled in favor of Tesla Motors Canada after the company filed an application claiming the Ontario government targeted the company when it canceled the province’s electric vehicle rebate program.
"We're pleased with the Court's decision to strike down the [Ontario government's] transition plan as unfair and unlawful," a Tesla representative said in a statement Monday night, according to CBC Canada.
"Tesla only sought fair treatment for our customers and we hope the Ministry now does the right thing by delivering on its promise to ensure all EV-owners receive their incentives during the wind-down period."
In mid-August, Tesla Canada filed a lawsuit against the provincial government alleging it has suffered "substantial harm" and lost sales following the cancellation of an electric vehicle rebate.
Ontario Superior Court judge Frederick L. Myers wrote in his decision: “If the government wants to transition out of the electric car subsidy program, the [minister of transportation] must exercise his operational discretion in a lawful manner. He has yet to do so."
“I, therefore, quash and set aside the minister’s unlawful exercises of discretion to implement the transition program announced [in July].”
Jessica Trepanier, a spokesperson for Ontario Attorney General Caroline Mulroney, said officials are "reviewing the ruling and will make a decision on how to proceed in the coming days."
The key for Tesla is producing an entry-level car in the mid-$30 000 range  which would put it in di...
The key for Tesla is producing an entry-level car in the mid-$30,000 range, which would put it in direct competition with major automakers.
'Deliberately and arbitrarily' excluded
In its lawsuit, Tesla claimed its customers can no longer qualify for an rebate, unlike those buying electric vehicles from other companies, even though Tesla is licensed within the province to sell cars. Tesla argued the Ontario government "deliberately and arbitrarily" excluded its customers without any prior warning or the company being given an opportunity for input.
After Progressive Conservative Doug Ford became Premier of Ontario, the Province canceled the cap and trade program. And because the Electric and Hydrogen Vehicle Incentive Program and the Electric Vehicle Charging Incentive Programs were funded through cap-and-trade proceeds, these programs were canceled, according to the Ministry of Transportation.
What the public and Tesla found out was that the program will end on Sept. 10 for those who have their vehicle delivered, registered, and plated if it was purchased from a dealer - this does not cover those who ordered their electric and hydrogen vehicle directly from the manufacturer, like Tesla.
This meant that people who have ordered a Tesla will have to fork out an additional CA$14,000 - the rebate amount - immediately.
"The [Government of Ontario's] asserted rationale for limiting the transition program to franchised dealerships is laden with factual assumptions that were susceptible to being proved or disproved with evidence," Justice Frederick L. Myers wrote in the court's decision.
More about Tesla, Ontario, EV rebate s, Doug Ford's government, Franchises
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