“While framed as a judicial review of an ostensibly administrative decision, the application is essentially an attack on a core policy decision made by Ontario’s Cabinet,” it said in the court filing.
“Such a decision is not reviewable by the court and is not a basis to quash the decision.”
In July, the government announced the cancellation of the rebate program but said that incentives would be honoured for vehicles ordered through a dealership if they are delivered and registered by Sept. 10.
Tesla sells vehicles directly to customers rather than through a dealership, making its vehicles ineligible for the incentives under the new rules.
Government ‘inflicted substantial harm,’ company says
It claims Tesla was also left out of a program that allows purchasers of other brands to receive rebates during a transition period and that the government has given it no reason for its exclusion.
It asked the Ontario Superior Court to quash the government’s move.
However, the government’s response said the decision to revoke the rebate program was made for “valid public reasons.”
The government said it decided to include only independently owned franchised dealerships in the transition funding in order to minimize negative impacts to the largely small or medium-sized businesses and that such dealerships may have vehicle inventory or made orders with manufacturers that could not be returned.
“Tesla Canada is effectively asking this court to make a declaratory order at the behest of its customers to provide them a grant from public funds.”