Electric auto maker Tesla Motors said Thursday it is suing Ontario's new government, claiming it was treated unfairly in the cancellation of a program providing rebates to residents who bought electric vehicles. The incentives were funded by Ontario's cap-and-trade program, which the government also canceled in the name of reducing gas prices.
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 vehicle maker from its transition plan after it scrapped the rebate program.
The government made provisions for people who had already bought or ordered cars but structured the transition program in such a way as to exclude Tesla, which does not use franchised dealerships - an "arbitrary" exclusion, Tesla claimed in the court documents.More news: Cincinnati Masters: Simona Halep to play Kiki Bertens in final
Customers who ordered their vehicle before July can still benefit from the program until mid-September - except for hundreds of Tesla customers, according to the firm.
Ministry of Transportation spokesperson Bob Nichols said in a statement that the government is aware of Tesla's application for judicial review, and that it would be inappropriate to comment "as this matter is before the courts".
None of Tesla's claims has been proven in court.More news: Yogi Adityanath announces Rs 15 crore aid towards Kerala floods
Tesla Inc.is taking the Ontario government to court over its decision last month to cancel incentives for purchases. The program, introduced by the previous Liberal government, offered rebates of up to $14,000 on eligible vehicles.
"My wife and I are still not sure if we are going to take delivery without the rebate. we are not millionaires", he said, adding that he fears losing a non-refundable deposit if he cancels the order.
Overall vehicle sales in Canada grew 4.8 per cent to a record 2.08 million previous year.More news: Who is Omarosa? And why is she causing such a stir?