Big win for a short period of time for Tesla, a little consolation prize for EV buyers in Ontario
Earlier this summer, the Ontario government decided to exclude Tesla from the phase-out period of the removal of the province’s EV incentives. The exclusion was done by a few carefully chosen words within the document that effectively ended the cap-and-trade program.
Naturally, the California-based carmaker responded with every legal weapon at their disposal. And finally, it's paying off! An Ontario judge has decided that excluding Tesla from the incentives phase-out was outright discriminatory. And it's now up to Ontario's ministry of transportation to fix the issue.
More about the Ontario EV Incentives Program
The cap-and-trade program - which was worth up to $14,000 - allowed customers to trade-in their current gas guzzlers, in favor of a tax exemption on the value of the trade in.
In turn, Tesla (or any other car manufacturer ) can only watch away as their sales of EVs there go down the drain. However, being singled out of the phase-out of the program by carefully chosen legal lingo is simply discriminatory against Tesla.
Back in July, the end of the cap-and-trade program in favor of lesser fuel taxes was announced by the Conservative party leader, Doug Ford. This, in turn, pretty much ended purchasing of EVs on a grander scale in the province, all in favor of cutting ten-cents on every liter of fuel sold in the province. A small positive change for the average Joe, but a huge impact on the environment.
Overall, this decision will undoubtedly lead to more greenhouse gas emissions and pollution in the province. But, the leaders of the province had every right to do so. However, not in the way that discriminated against one single manufacturer.
When the decision was announced, many Tesla model 3 customers who had a car on order, would be safe from this because the government released the following statement:
Inventory that dealers have on lots or orders made by dealerships with manufacturers on or before July 11, will also be honoured for the incentive provided that the vehicle is delivered to consumers, registered, and plated by September 10.
The government later revealed they will be treating Tesla vehicle orders differently. This meant that if the buyers didn't have their cars by July 11, they wouldn't be eligible for the $14,000 rebate.
The government then adjusted some wording to indicate this only include franchise dealerships, which meant Teslas would be eligible if delivered by September 10. Confused yet? So are the Tesla buyers. Basically, take delivery before September 10 and you're still eligible. Simple enough, right?
Electric cars from other automaker have to be delivered and plated on or before September 10 to qualify.