Image: Tesla
Tesla is threatening to sue the Manitoba government over its decision to ban the automaker from the province’s electric vehicle rebate program.
Lawyers for Tesla sent a letter to Premier Wab Kinew’s office warning they plan to ask a court to overturn the exclusion. Tesla argues the ban is procedurally unfair, carried out for improper reasons, and never came with an official explanation from the government.
The Canadian province launched its EV rebate program in 2024, offering up to $4,000 for electric vehicles priced under $70,000. Manitoba’s NDP government later blocked Tesla and other vehicles made in China from receiving the rebate, framing it as a retaliatory move tied to U.S. trade tariffs. Kinew has said the ban stays until the U.S. drops its tariffs on Canadian goods, directly linking the decision to Elon Musk’s role as a senior adviser to President Trump.
Tesla’s legal team pointed to a similar situation in Ontario back in 2018, where a court ruled that pulling Tesla from a provincial EV rebate program was arbitrary and unfairly singled out the company. Ontario reinstated Tesla before eventually scrapping the program entirely.
The timing is notable because Tesla was actually the most popular choice among Manitoba EV buyers before the ban. Freedom of information data shows Tesla buyers accounted for more than 20 percent of all approved provincial rebates between August 2024 and February 2025, with nearly $1.3 million in incentives going toward 337 Tesla vehicles, putting it ahead of Ford, Hyundai and Chevrolet.
Want to see more of our stories on Google?
P.S. — Buying a new Tesla? Click here to save $1,000 USD, while supporting independent news.
Help support us by shopping on Amazon here.
Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent media!
