WINNIPEG – The Manitoba government is confronting potential legal action following its decision to exclude the electric vehicle manufacturer Tesla from its rebate program. This announcement was made on Thursday by Premier Wab Kinew's office, which shared a letter received from lawyers representing Tesla Motors Canada. The two-page correspondence indicates that Tesla plans to petition a judge to overturn its exclusion from the rebate program, alleging that the decision was "procedurally unfair and undertaken for an improper purpose."
The letter argues that the government has not officially stated any reasons for Tesla's exclusion, suggesting that it appears to contradict the stated objectives of the electric vehicle (EV) rebate program. No immediate comment was available from company officials regarding this unfolding situation.
Kinew stated that the government might reconsider its stance only if the United States were to lift its tariffs on Canadian goods. This significant remark linked the potential for change in the rebate policy to actions taken by U.S. President Donald Trump, with whom Tesla’s CEO, Elon Musk, has had a notable relationship as a former senior adviser.
In Kinew's words, “We have a simple message to them — Elon, get Donald Trump to stop the tariffs, and then we can talk about the EV rebates.” This comment was made during a question period in the legislature, highlighting the political dimensions of the issue.
The EV rebate program, initiated by the New Democratic Party (NDP) government in 2024, offered rebates up to $4,000 for consumers purchasing electric vehicles with a maximum value of $70,000. However, last year, the program curtailed rebates for Tesla vehicles, in addition to those manufactured in China, as a retaliatory measure against U.S. tariffs.
Tesla's legal representatives pointed to a precedent set by a 2018 ruling from the Ontario Superior Court, which deemed the Ontario government’s decision to exclude Tesla from its rebate program as arbitrary and harmful to the company. Following this ruling, Ontario ultimately moved to include Tesla buyers before phasing out the program entirely.
Prior to its exclusion, Tesla had gained substantial traction within Manitoba's rebate program. From August 2024 to February 2025, Tesla vehicles represented more than 20 percent of all approved rebates in Manitoba, totaling 337 vehicles and approximately $1.3 million in rebates, as outlined in documents retrieved under freedom of information laws. Ford followed in second place with 226 vehicles and $864,500 in rebates, while other manufacturers like Hyundai and Chevrolet lagged behind.
Opposition Progressive Conservative Leader Obby Khan expressed support for enhancing opportunities for Canadian businesses, suggesting that government contracts with SpaceX, a firm owned by Elon Musk, could be awarded to local companies instead. He highlighted that existing telecommunications contracts with Musk’s SpaceX could be fulfilled by businesses based in Manitoba or across Canada.
Ultimately, the situation raises questions not only about the future of electric vehicle incentives in Manitoba but also about the broader implications of cross-border trade policies and their effects on local economies and industry leaders.
