The Niagara Falls Review

Ontario judge gives Tesla a win for business model

- IAN BICKIS

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 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. The ruling requires that the government review the program to include Tesla or provides justificat­ion for the company’s exclusion.

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

Myers found the government 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 sell through its own dealership network, the province further specified to the company that only franchised dealership­s would be eligible.

 ?? CHRISTIE HEMM KLOK NYT ?? Electric vehicle maker Tesla is facing legal pushback from several states in the United States that want to prevent direct-to-consumer sales.
CHRISTIE HEMM KLOK NYT Electric vehicle maker Tesla is facing legal pushback from several states in the United States that want to prevent direct-to-consumer sales.

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