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Tesla Threatens Legal Action over Manitoba's End to EV Rebate for Company Vehicles

Tesla says Manitoba’s exclusion was procedurally unfair and improper, and the company plans to ask a judge to overturn the decision.

  • Tesla Motors Canada notified the government last week of its intent to seek a judicial review, challenging Manitoba's decision to exclude the automaker from the 2025 and 2026 rebate program.
  • Manitoba excluded Tesla and China-made vehicles from the program last year, with Finance Minister Adrien Sala describing the move as a commitment to "Trump-proofing our economy" amid trade tensions.
  • The rebate program offered Manitobans up to $4,000 for electric vehicles priced below $70,000, which Tesla's legal notice calls "unfair" and "improper," claiming the exclusion contradicts program objectives.
  • During question period on Thursday, Premier Wab Kinew told the Legislature the government will only reverse its decision if the United States drops tariffs, drawing criticism from Opposition Leader Obby Khan.
  • Tesla previously succeeded in challenging a similar exclusion in Ontario in 2018, according to legal documents, establishing potential precedent for the upcoming Manitoba court battle over the rebate program.
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13 Articles

Winnipeg Free PressWinnipeg Free Press
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Tesla threatens legal action over Manitoba's end to EV rebate for company vehicles

WINNIPEG - The Manitoba government said Thursday it is facing potential legal action over its decision to remove auto manufacturer Tesla from its rebate program for electric vehicles.

·Winnipeg, Canada
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Winnipeg Free Press broke the news in Winnipeg, Canada on Thursday, May 28, 2026.
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