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article imageOntario shuts down EV rebates leaving Tesla owners owing $14,000

By Karen Graham     Jul 15, 2018 in Business
Toronto - Some Tesla customers say they now have to fork over an extra $14,000 for their new Model 3 electric cars because of Ontario's sudden decision to end an incentive program for electric and hydrogen vehicles.
After Progressive Conservative Doug Ford became Premier of Ontario, the Province canceled the cap and trade program as part of its commitment to bring gas prices down by 10 cents a liter and help reduce costs for Ontario families and businesses by $1.9 billion dollars per year.
And because the Electric and Hydrogen Vehicle Incentive Program and the Electric Vehicle Charging Incentive Programs are funded through cap-and-trade proceeds, these programs are canceled, according to the Ministry of Transportation.
Interestingly, the provincial government is saying that while 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.
Tesla does not have dealers in Canada and their cars are sold directly to consumers. And for this reason, alone, those people who have ordered a Tesla will have to fork out an additional CA$14,000 - the rebate amount - immediately.
Many families are angry at the way the province has handled this issue with Tesla. Tesla buyers knew the rebates would probably be canceled, owing to Doug Ford being elected, but most figured it would it be done in a way where existing orders in progress would be honored.
CBC Canada is reporting that Kurtis Evans says his family ordered a Tesla Model 3 before the new government took power, and they did so only because the provincial government promised "an orderly wind-down of all programs funded out of cap-and-trade carbon tax revenues."
"I am devastated by the reversal of what has been communicated to us," Evans said. "The loss of the rebate is going to have an impact on our lives, and will put a greater strain on my family."
Ontario decision may affect all EV sales
Some experts believe removing the rebate on electric vehicles will have an impact on sales. David Adams, president of the Global Automakers of Canada industry association, cites what happened in British Columbia when they removed the rebates.
Tesla s brief showing as No 1 US car maker will go a long way in fueling sales of its affordable Mod...
Tesla's brief showing as No 1 US car maker will go a long way in fueling sales of its affordable Model 3, shown in image.
"When they canceled it, sales went down dramatically, and then when they reinstated it, sales went back up again. That is the same pattern that we've seen in other jurisdictions internationally," he said.
The Electric Vehicle Charging Incentive program was also canceled on July 11, but those charging stations purchased and installed before July 11 will still be able to receive incentives through the program, but only if the application is submitted within 60 days.
And even though the electorate has spoken, and Doug Ford is in office - getting gasoline reduced by 10 cents a liter is not going to help the bigger picture for Ontario.
As Electrek points out, "If the cost of emissions from gas-powered cars is not properly accounted for then there’s an unpriced externality in the market that needs to be regulated." As for now, Ontario is back to a system where everyone is paying for the emissions from fossil fuel powered cars and trucks, and there is no incentive to buy electric vehicles.
More about Ontario, Tesla, Rebates, electric vehicles, Progressive Conservative government
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