Tesla Motors Canada is taking Ontario's new government to court, claiming it was "singled out for unfair and arbitrary treatment" after the government cancelled an electric vehicle rebate, local media reported.
The new Ontario Premier Doug Ford has cancelled several policies including the Electric and Hydrogen Vehicle Incentive Program, which was brought in by his predecessor.
Aiming to reduce greenhouse gas emissions in the province, the program offered rebates of up to 14,000 Canadian dollars (about 10,700 U.S. dollars) for people who bought electric vehicles. During the transition period, the government promised anyone who bought electric vehicles through a dealership before Sept. 10 can still get rebates.
Tesla Canada claimed the company was singled out unfairly because it sold vehicles directly to customers instead of through dealerships. However, people buying electric vehicles from other brands were unaffected during the transition period, the lawsuit of Tesla alleged.
"The Minister of Transportation's decision suddenly left hundreds of Tesla Canada's Ontario customers in the unfair position of no longer being eligible for the rebate they had expected to receive when they ordered their vehicles," said Tesla Canada in its lawsuit.
The lawsuit asked the province's superior court to quash the "arbitrary and entirely unreasonable" decision.
A spokesperson for Ontario's Ministry of Transportation said it would be inappropriate to comment the lawsuit because "this matter is before the courts."
