Ontario judge gives Tesla a win

Ruling says the province singled out electric carmaker for harm

TORONTO — Tesla Inc. has secured a minor legal victory in Ontario in its push for equal treatment as the company looks to defend its direct-to-consumer business model in numerous markets.

The Ontario case comes as Tesla struggles to move ahead with its retail model in the U.S., where it has not used franchised dealerships.

Numerous U.S. states including Michigan, New Jersey and Missouri have passed laws in recent years to prevent Tesla from selling vehicles directly to consumers following pressure from automobile dealership associations.

Ontario Superior Court judge Frederick Myers ruled Monday that the provincial government’s decision to exclude Tesla from a grace period for an electric vehicle rebate program was arbitrary and had singled out Tesla for harm.

The ruling requires the government to review the program so that it includes Tesla or provides adequate justification for the company’s exclusion.

Tesla launched the case after the government ended the rebate program worth up to $14,000 per vehicle on July 11, but said it would extend the rebates to vehicles already sold through dealerships if they were delivered and registered within 60 days.

Myers found the Conservative government had originally tried to exclude Tesla from the extension by specifying only vehicles ordered through a dealership would be eligible for the extension.

When it learned Tesla did indeed sell through its own dealership network, the government further specified to the company that only franchised dealerships would be eligible.

Tesla CEO Elon Musk has staunchly defended the direct retail model.

Musk said in a blog post that franchised dealerships don’t have enough incentives to sell electric cars and that the company needs to place its sales venues in areas where it can attract foot traffic and educate potential customers.