Ontario government cancellation of Tesla electric vehicle rebates

Controversial tech genius Elon Musk’s disruptive car company Tesla is suing the Ontario government for removing government supported rebates on their electric cars.

This occurred briefly after Musk’s impulsive twitter rant, which caused a lot of controversies and has also somehow already affected the public image of his company Tesla. Musk tweeted about taking his company Tesla private, after convincing shareholders that his funding is secured.

This instigated a rise in the stock price of Tesla. Tesla did this without actually informing the Security and Exchange Commission, which is tantamount to Insider trading. Sources have claimed that he has lost favor both in the Us Congress and internationally.

The access of these rebates was granted to Tesla customers within the last one year. And they were removed shortly after whereas those of other companies have lasted many more years. Tesla’s vehicles are innovative and cheaper alternatives to fossil fuel cars But they still require a higher up-front purchase cost than fossil powered cars. Hence, they require government rebates to make their products more accessible to the average customer.

Tesla vehicles which costs as much $71,000 in Canada requires a rebate of $14,000 for middle-class consumers in Canada to make them affordable. Tesla doesn’t resell vehicles through dealers. Tesla sells its vehicles directly to its customers rather than going through a dealership, making its products ineligible for incentives under the new regulations.

Tesla has a reputation for delayed production targets thereby creating doubts in the mind of their customers, in their goal of becoming the top electric car company in the world.
In addition to the removal of this rebates and the unfavorable public image of Elon Musk, customers are beginning to lose interest in their products. Tesla stated that the rebates were impromptu and unjustified thereby requiring at least an explanation or reversal of the action by the government. Tesla’s bold action takes the cue from Elon Musk courageous style of facing his enemies.

Tesla’s founder has a reputation for never backing down from a challenge and defending any attack on his product.

Speaking on this problem a Member of Provincial Parliament Catherine Fife said that the removal of the electric vehicle rebates is a reckless decision by Doug Ford and has negatively affected the province.

Many customers who have been had been waiting for the delivery of the new Tesla model 3 cars have started to think otherwise about making their purchase. The situation puts customers in a dilemma. Complaints from customers show that accepting delivery without the rebate will be too expensive to consider but the fear of also losing the non- refundable deposit due to order cancellation, puts them in a tight corner. In a sense, they are stuck between the devil and the deep blue sea.

It’s no surprise that Tesla possesses the gumption to sue an executive arm of government. Still, it’s likely an exuberant move on their part to go against the government.

Let’s just hope that the company that has inspired us all, doesn’t become obsolete, due to instability.

 

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Usman Salis

About the Author: Usman Salis

An Engineer a Freelance Journalist and Web content creator. I have a degree in Engineering and pursuing a masters in business Administration.