Tesla Buyers Reach Back Into the Public Purse After Court Ruling
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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- Master Baiter There are plenty of affordable EVs--in China where they make all the batteries. Tesla is the only auto maker with a reasonably coherent strategy involving manufacturing their own cells in the United States. Tesla's problem now is I think they've run out of customers willing to put up with their goofy ergonomics to have a nice drive train.
- Cprescott Doesn't any better in red than it did in white. Looks like an even uglier Honduh Civic 2 door with a hideous front end (and that is saying something about a Honduh).
- Kwik_Shift_Pro4X Nice look, but too short.
- EBFlex Considering Ford assured us the fake lightning was profitable at under $40k, I’d imagine these new EVs will start at $20k.
- Fahrvergnugen cannot remember the last time i cared about a new bmw.
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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.
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.