Tesla Wins In Ontario: Judge Rules Law Discriminatory Against Automaker

Tesla Model 3

AUG 28 2018 BY VANJA KLJAIC 27

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.

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.

Source: Electrek

Categories: Tesla

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27 Comments on "Tesla Wins In Ontario: Judge Rules Law Discriminatory Against Automaker"

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Deepak

Lots of people cancelled their orders with Tesla when the incentives were taken off, as they didn’t know how they would be able to cough up extra 14K and to add to that confusion, even the call center at the ministry were totally confused about what was happening.
Few people later on they have placed another order with Tesla for the same Model 3 after digesting the fact that they are not able to get the incentives and finding ways to cough up 14K.
Now the big question is how the Govt will treat these kind of customers. They are left in the dark because of the decision the Govt made which was not fair to the public.

bro1999

Is the 14k incentive taken off at point of sale? Don’t have to “float” the money like you do for the $7,500 credit in the US?

OttawaM3

I’m in Ontario but I received my 3 before the program was cut.

The way the EV rebate works for a Tesla is that you pay for the car in full then fill out a bunch of forms that you then submit to the government. Then you wait for the rebate to be direct deposited into your bank account. Process typically takes 6 months. As I picked up my Tesla in June, I don’t have my rebate back yet.

It was possible to get the rebate up front or for the dealer to submit the paperwork directly and most dealerships (GM, Ford, ect) did that but a few years ago the Toronto Tesla showroom failed to submit the correct paperwork for one of their customer’s cars. Tesla itself paid the rebate amount to that customer but them stopped submitting the forms for their future customers and dumped the responsibility for the paperwork on the client.

William

If you Lease in the US, no “float” is required.
Some manufacturers give you the whole $7.5k, some like GM and now Nissan (currently), are clawing some portion back. I wonder if Hyundai is playing their own game?

ffbj

The damage to tesla has already been done, and this remedy is not really a remedy at all, as many orders were cancelled directly attributable to the actions of the government. There probably should be some compensatory damages paid directly to Tesla.

Deepak

We have to open up a google spreadsheet to capture the details of the people who cancelled due to this inappropriate decision by the ON govt and if the EV incentives do not address the cancellations we should take the government to court once again for the damages

F150 Brian

Governments don’t have money.
So you really mean rape the tax payer for no benefit.
No thanks.

Kbm3

Someone has to make up for all the pickups spewing pollution everywhere.

Deepak

Now the ON govt (tax payers) have to pay the legal fees incurred by Tesla. This wouldn’t have happened in the first place, if the Govt was fair in its policies.
It is the job of the Govt to create a level playing field for the businesses to operate, but this Govt ………
I think the way they are going more legal battles will be lost, so all the tax payers have to file a case in court so that the PC Party pays for their mistakes

ffbj

In another decision, also in Tesla’s favor:
(Reuters) – A federal judge in San Francisco dismissed a securities fraud lawsuit in which Tesla Inc (TSLA.O) shareholders accused the electric car company and Chief Executive Elon Musk of misleading them about the progress of production of its Model 3 vehicle

(⌐■_■) Trollnonymous

Not sure why they haven’t posted an article on it yet. I posted this yesterday as an OT on another thread here.

This one is in the works, too, among another multitude of articles. I’m spending nearly all my time moderating comments and dealing with hate mail, so others are working that story. We’re cranking them out these days as fast as humanly possible. Very excited to say that we’re getting out well over 20 stories a day one after another!

I took over that story. It will be done soon. Thanks.

Mark.ca

Hate mail? Tell us more…

Wow … it’s not good. Haha

Mark.ca

You seriously get that? What do they hate?

Anything that is negative or positive about Tesla. Any stories that we don’t choose to cover. Especially SEC stuff, lawsuits, Elon on drugs, Tesla stock …. you know … all the stuff IEV should be covering but isn’t. Anytime we publish an article about an EV that sheds some light on a potential issue with the car. I could go on and on. You should see the 100s of comments that I delete every day that no one gets to see. It’s crazy. The internet is crazy!

(⌐■_■) Trollnonymous

Nuttin but love for ya bruh!

Likewise!

OttawaM3

A lot of people were affected but some are going to be left out of the coming settlement. @Deepak raise some issues already but an other issue is that bunch of us in Ontario ordered and received a RWD car when we really wanted AWD. The only reason I ordered RWD is that I would not have bought the 3 without the rebate and I really wanted to stop driving gas cars so I settled.

I didn’t like the old government but I don’t like Doug/Rob Ford government either.

Brett

Another bonehead move by the new government, apparently no one foresaw the fact that they were disproportionately targeting a single company would make them more susceptible to legal action.

This government is also seeking to cancel a wind farm project that is nearly built and is breaching their contract with the vendor at a cost of about $100 million to the people of Ontario.

They are also seeking to renegotiate existing contract that are already signed for power purchase agreements.

Real business savvy government over here. They were busy crying over how the previous government cost taxpayers money over cancelling a contract years ago, and then they do the exact same thing within a few weeks of getting elected.

Deepak

ON premiere has become a wrecking ball, act first and think later.
He seems to be in a hurry to prove himself rather than weigh and take appropriate action. Don’t know what is the real hurry. We are going to pay more in legal fees for sure.

William

Save on all those legal fees, and you can avoid having to “Lawyer Up”!

But, remember to bring Plenty of donuts!

https://youtu.be/B5bVm5qsbbM

YVES LAURIN

In your face Ford (Doug, not the car company)

Pushmi-Pullyu

Well, that’s a victory for prospective BEV owners in Ontario! 🙂

Too bad U.S. courts are not similarly enlightened when it comes to State dealership protection laws, which are being misused to limit or even wholly prevent Tesla from doing direct sales in some States.

Mark.ca

It’s not! This is only temporary and after that it’s gone. There’s no win here for evs.

Mark.ca

This was a very predictable outcome. I’m only surprised that the gov didn’t see this coming. If i were Tesla I would go a step further and actually sue for lost orders.