TORONTO – A court in Ontario has declared itself in favor of the Canadian branch of Tesla Inc. in his petition that it was unfairly treated in the cancellation by the provincial government of a discount program for electric vehicles.
Ontario Superior Court Judge Frederick L. Myers said that the decision to exclude Tesla from a grace period for the phasing out of the program was random and Tesla had signaled for damages.
Tesla launched the legal petition after the Ontario Progressive Conservative government terminated the rebate on July 11, but said it would extend the discounts to vehicles already sold through dealers if they were delivered and registered within 60 days.
The provincial government later clarified that the extension only applied to vehicles sold through franchised cars, which excluded Tesla's dealers in Ontario.
Tesla said it was satisfied with the court's decision to delete the discriminatory policy.
"Tesla was only looking for a fair treatment for our customers and we hope that the ministry will do the right thing now by living up to its promise to ensure that all EV owners receive their incentives during the phasing-out period."
A spokesperson for the Attorney General's Office said the government was reviewing the ruling.
The government had said that the decision to limit the program to franchise cars would help protect small and medium-sized businesses that may have been affected by the program, but according to Myers, the government has provided no evidence to support its plan.
"The discretionary decision to limit the transition to franchisers has nothing to do with protecting small to medium-sized dealers or protecting dealers who may suffer damage to manufacturers."
Myers destroyed the discretion of the government because it was made for an improper purpose and because it was Tesla, without offering the car manufacturer "any fair trial".
Tesla said it had 600 active customer orders when the government terminated the program in July and 175 customers have since canceled their orders.