By on August 28, 2018

tesla-model-3

We told you earlier this month that Tesla’s Canadian arm was suing the Ontario government for access to big rebates for some of its vehicles. For years, Ontario, located north of Erie, Pennsylvania, handed out up to $14,000 in taxpayer cash to electric vehicle buyers, part of its effort to support green living.

Over the years, the ceiling of eligible MSRPs varied — from unlimited, to $75k, to $150k, and back to $75k, shortly before the ousting of the previous government in this June’s election. This writer made his feelings on lofty EV subsidies quite clear.

While the cancellation of the province’s Electric and Hydrogen Vehicle Incentive Program (EHVIP) came with a grace period for buyers awaiting delivery that runs out on September 10th, it didn’t include Tesla buyers. Thanks to the automaker’s lawsuit, Tesla buyers can now grab back that $14,000.

According to a CBC report, the Ontario Superior Court of Justice sided with Tesla after declaring the government’s reasoning shaky. Ontario stated in early July that only vehicles purchased from a traditional dealer would get the grace period, whereas direct sales would end immediately.

Tesla’s Canadian branch said the decision inflicted “substantial harm,” with many would-be customers cancelling their orders after learning they wouldn’t be eligible for the rebate. The brand was “deliberately and arbitrarily” targeted, it said.

“We’re pleased with the Court’s decision to strike down the [Ontario government’s] transition plan as unfair and unlawful,” a Tesla representative told CBC. Tesla Canada argued that, as an Ontario-licensed dealer, it is just as eligible for the rebate as GM or Nissan.

In the court’s decision, Justice Frederick L. Myers wrote, “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.”

This might not be the final word on the issue. Through a spokesperson, Ontario Attorney General Caroline Mulroney said the government is “reviewing the ruling and will make a decision on how to proceed in the coming days.”

In fairness to Tesla Model 3 buyers, many other car shoppers also benefited from the rebate, including those lusting after the Chevrolet Bolt, Chevrolet Volt, Nissan Leaf, Chrysler Pacifica PHEV, and other green machines. Lesser sums were paid to buyers of plug-in hybrids with lower seating capacities and smaller batteries.

[Image: Tesla]

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25 Comments on “Tesla Buyers Reach Back Into the Public Purse After Court Ruling...”


  • avatar
    SCE to AUX

    So the court agreed with me that the ruling was prejudicial:

    https://www.thetruthaboutcars.com/2018/08/suing-for-incentives-tesla-doesnt-like-the-way-ontarios-treating-it/#comment-9596366

    If incentives are the issue, then Ontario should address that problem without mixing the Tesla question into it using code language.

  • avatar
    thelaine

    Go get that taxpayer money, Elon. It is your true genius.

    • 0 avatar
      SCE to AUX

      Is Mary Barra any different? Please explain.

      • 0 avatar
        redapple

        SCE

        Simple. Can i explain it to you?

        Muskrat’s company relies on GOVT freebies. Ms. Barra’s firm does not.

        • 0 avatar
          SCE to AUX

          That’s a joke.

          Is the 9-figure tax break to keep GM’s Oshawa plant in Ontario nothing? Or the billion-dollar tax break for the joint Toyota-Mazda plan in Alabama?

          Doesn’t the $7500 EV subsidy for the Chevy Bolt, Nissan Leaf, and other EVs count?

          • 0 avatar
            jkross22

            Simple solution: end auto subsidies straightaway. Tesla folds or is bought, GM and pretty much everyone else likely shrinks dramatically and prices increase because carmakers no longer get free government sugar.

            Why is it the government’s job to subsidize carmakers products?

          • 0 avatar
            SCE to AUX

            @jkross22: Agreed.

            But as you can imagine, there would be an epic battle in every subsidized industry, starting with farming and public education. It’s a political battle the US needs to have.

          • 0 avatar
            tylanner

            There are only facts and jokes at TTAC….luckily it is not hard to tell the difference…

          • 0 avatar
            redapple

            SCE

            I ll agree to that.

        • 0 avatar
          DavesNotHere

          You mean except for the $10.6 Billion in free money US taxpayers gave up to GM in order to bail them out.

          https://money.cnn.com/2014/05/29/news/companies/gm-profit-bailout/index.html

          • 0 avatar
            thelaine

            I think UAW and/or GM still owes the US taxpayer 20 billion for the bailout of the UAW pension fund. I’d be happy to discuss this theft of taxpayer money from now until the end of time, so no one ever forgets how badly the US taxpayer got colonoscoped.

            But this article wasn’t about the UAW, it was about the huckster con artist who runs TESLA and, to a lesser extent the Scientology-like following of L. Ron Musk.

  • avatar
    forward_look

    Helpful of you to locate Ontario north of Erie, Pennsylvania; actually, it is south of Detroit, Michigan.

  • avatar
    I_like_stuff

    In a sane world, this charlatan would be in prison for fraud, not adored breathlessly by the auto media.

  • avatar
    stingray65

    I thought the rich people that bought Teslas were just trying to save the world from global warming, but it seems they expect to get paid by the rest of us to do it.

    • 0 avatar
      SCE to AUX

      “They” are your elected representatives, who believed that incentivizing the purchase of EVs would be good for the atmosphere.

      Surprisingly, Nissan was the leading mfr of such EVs and its buyers were the leading recipients of said incentives until recently – but it’s Tesla’s “rich” buyers who get the hate. Whatever; here at TTAC Nissan buyers have bad credit, and Tesla buyers are “rich”.

      The ‘expectation’ – at least by me – is even-handed treatment by local governments regardless of the sales distribution model. If the intent is to promote EVs, then the sales distribution model is totally irrelevant. That’s what this thread is about, by the way. The local government tried to do what you want, and got called out for it because it’s illegal.

      The “rich” buyers of EVs are simply picking up the money placed on the table by *your* elected representatives. This includes people taking delivery of $28k Leafs. If you don’t like it, take out your resentment at election time, or petition for a change in the law. I’ll even sign on to it, since I’m no tree hugger and I’m fundamentally against subsidies.

      • 0 avatar
        Art Vandelay

        They did change the law…the subsidies are ending for everyone. This just means that they cant end them sooner for Tesla buyers awaiting delivery.

        Having said that, I think they should have a cut off date for all of them. Tesla has notoriously long waits.

      • 0 avatar
        stingray65

        I am against subsidies in general, but if we are going to subsidize anyone is should be the needy not the rich. The demographic for Tesla buyers puts them in the top 5% – surely they can afford to show the world how much they care by buying a fancy car with their own money.

  • avatar
    vehic1

    Not particularly a Tesla fan – but GM, Chrysler, and even Ford were saved by gubmint bailouts, and the oil industry has received Billions in subsidies over the years.

    • 0 avatar
      stingray65

      The oil industry does not receive subsidies from the government beyond normal depletion allowances that every business gets (depreciation), and is an industry that pays huge taxes.

      https://taxfoundation.org/oil-industry-taxes-cash-cow-government

    • 0 avatar
      thelaine

      This is the most tired rationale for Tesla subsidies. This argument justifies any subsidy of anything anyone personally wants. The government subsidizes GM, so why can’t they subsidize my swimming pool or my neighbor’s sludge factory? After all, he employs ten idiots who would otherwise be on welfare or crack.

      This is weak. We should be moving in the opposite direction. The size of government and the amount of debt and waste are so great as to be almost literally incomprehensible. We need fewer subsidies and less government, not more. Tesla is a poster child for subsidy-sucking greed monkeys like Musk and all his wealthy entitlement-gobbling customers and acolytes.

  • avatar
    vehic1

    stingray65: I thought someone? wanted to end the supposed “war on coal” because heat waves are a hoax?, but it seems they expect to get paid by the rest of us to do it.

    • 0 avatar
      stingray65

      Heat waves are a hoax in terms of man-made global warming – the summer heat in Europe has revealed rocks in the Elbe river that show droughts going back centuries – before anybody was burning coal.

      https://www.smithsonianmag.com/smart-news/hunger-stones-emerge-drought-parched-czech-river-180970130/


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