Tesla Launches Lawsuit Against Ontario Government

One company is taking legal action against the newly elected PC government following its promised—but exceedingly controversial—cancellation of the cap-and-trade program.

According to the Canadian Press, well-known Elon Musk operation Tesla is suing the Ontario government over the shutdown of EV incentives.

“In an application for judicial review, #Tesla Motors Canada says the decision by new Ontario Premier Doug Ford’s government to cancel the program in July left hundreds of its customers no longer eligible for rebates they expected to get when they ordered their vehicles,” Canadian Press editor Jody White wrote in a series of tweets.

The cap-and-trade program, which many argued was valuable, gave rebates to residents who owned electric vehicles.

While the government promised an “orderly wind down” of the cap-and-trade program and said it would compensate eligible participants of the program who would no longer be able to benefit, Tesla says it’s been singled out and that “purchasers of other brands will still get rebates during a transition period until Sept. 10.”

Ford’s promise to cancel cap-and-trade has been also criticized by environmental advocacy groups, including Environmental Defence.

“The cancellation of cap-and-trade is a bad idea for many reasons. Cap-and-trade is the lowest cost way for Ontario to comply with Ottawa’s carbon pricing plan. Ontario businesses are literally invested in cap-and-trade, having bought over $2.8 billion in permits,” the organization wrote in a recent news release.

“The Ontario government will need to find billions of dollars to buy back those permits, or risk being sued.”

Some experts have also suggested that the federal government could still implement its own carbon tax in Ontario.

In a Tweet, White says the lawsuit asks the Ontario Superior Court to quash the “arbitrary and entirely unreasonable” decision which it says has already tarnished its reputation and caused it financial harm.

The newly elected Ford government revoked the cap-and-trade carbon tax regulation and prohibited all trading of emission allowances effective July 3, 2018. All programs currently funded through the cap-and-trade carbon tax have been cancelled, including the immediate wind down of the Green Ontario Fund.

Cover photo courtesy of Tesla’s official Facebook page

Your Comments