Tesla Motors Canada is suing the government of Ontario province over the cancellation of rebates to buyers of electric cars, Canadian media reported Thursday.
Purchasers were able to garner as much as CAN$14,000 (US$10,636) toward the purchase, but newly elected Premier Doug Ford and his Progressive Conservative Party killed the plan in July.
The suit claims that Tesla Canada was removed from a program where buyers of some electric vehicles could still get the rebates during a transition period to end the bonuses.
Tesla says hundreds of purchasers of its cars where left hanging when the program ceased in July and were no longer eligible for the rebate.
“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 by Tesla Aug. 10.
The suit requests the court to quash Ford’s decision, adding that the government gave no reason for excluding Tesla from the Sept. 10 deadline for those who have had their vehicle delivered from a dealer. But it ended immediately for those who bought cars directly from the manufacturer, in this case Tesla.
The Ontario Transportation Ministry said that because the case is now before the courts, it could not comment on the Tesla action.
Tesla has agreed to refund the deposit to some buyers who said they cannot afford the purchase of a $71,000 car without the maximum government rebate of CAN$14,000.
By Barry Ellsworth in Trenton, Canada