Tesla’s legal challenge against Manitoba over its exclusion from the province’s electric vehicle (EV) rebate program reached a key hearing on Monday, with the automaker arguing the government still hasn’t adequately explained who made the decision or why.
Tesla is asking the Manitoba Court of King’s Bench to overturn the province’s decision to exclude Tesla vehicles from its EV incentive program. The program offers rebates of up to $4,000 on eligible new EVs and plug-in hybrids and $2,500 on used vehicles.
Tesla lawyer Michael Parrish called the exclusion “incredibly unfair,” arguing the limited documents produced by the province provide little insight into how the decision was reached.
“What is at issue in this proceeding is the actual decision,” Parrish told Justice Elissa Neville. “We don’t know why Tesla Canada was excluded, we don’t know what information or documents were considered.” (via CBC)
Manitoba removed Tesla from the program in its 2025 budget, shortly after trade tensions escalated between Canada and the United States. Chinese-made EVs were also excluded, but other American automakers remained eligible.
Tesla says it wasn’t consulted before the change and was never given a formal explanation. The company argues the exclusion was politically motivated, pointing to comments from Premier Wab Kinew, who said last year that Tesla CEO Elon Musk should “get Donald Trump to stop the tariffs, and then we can talk about the EV rebate.”
The province sees the issue differently. Government lawyer Joseph Langan argued the exclusion was a budgetary and funding decision that shouldn’t be subject to judicial review.
“This doesn’t belong in a judicial review. This is a policy decision. This is a budgetary decision,” Langan said.
Monday’s court hearing is the latest step in a case that began earlier this year. Tesla previously sought an expedited hearing, while Manitoba and Manitoba Public Insurance attempted to have the challenge dismissed. Tesla is also seeking relief for customers who missed out on rebates following it being kicked out the program.
There is also some history behind Tesla’s argument. In 2018, the automaker successfully challenged Ontario after Tesla customers were excluded from a transitional EV rebate program, with the court ruling the treatment was arbitrary.
Justice Neville reserved her decision, meaning a ruling will come at a later date.
Related Articles:
- Tesla files legal challenge over Manitoba EV rebate ban
- Tesla seeks retroactive EV rebates in Manitoba court challenge
- Manitoba Removes Tesla from EV Rebate Program in Response to U.S. Tariffs
- EV Rebates in Canada (2026): Calculator and Which EVs Qualify
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