Tesla threatens to take province to court over EV rebate Government ended discounts for U.S. automaker in 2025; stop the tariffs and we’ll talk, Kinew tells Musk By: Gabrielle Piché Posted: 6:19 PM CDT Thursday, May. 28, 2026

Tesla Canada is threatening legal action against the Manitoba government for its exclusion from a provincial electric vehicle rebate program.

Lawyers representing the automaker say it’s unfair Tesla was left out of the program — which gives Manitobans money back for buying and leasing electric vehicles — in 2025 and 2026.

A letter sent to the government from Tesla called the move “procedurally unfair and undertaken for an improper purpose.”

The notice says the company intends to seek a judicial review of the decision.

The letter, dated May 22, is addressed to a Manitoba Crown counsel.

“While the government has never formally identified any reason for Tesla Canada’s exclusion, the exclusion appears to be unrelated to, and inconsistent with, the stated objectives of the EV rebate program,” the letter said, which is signed by Michael Parrish, lawyer for Fasken Martineau DuMoulin LLP.

Tesla said it plans to file a notice of application and supporting affidavit in the Manitoba Court of King’s Bench this week.

“Procedurally unfair and undertaken for an improper purpose.”

Online records didn’t show an application Thursday afternoon.

Premier Wab Kinew raised the impending legal action during question period on Thursday.

“When it comes to (Tesla chief executive officer) Elon Musk and his affinity for supporting (U.S. President) Donald Trump’s attacks on Canada, we cut him off — we ended the subsidies for Tesla vehicles,” Kinew said.

“We have a simple message for (Tesla): Elon, get Donald Trump to stop the tariffs, and then we can talk about the EV rebates.”

Tesla didn’t immediately respond to questions from the Free Press. Parrish declined to comment.

In its letter, the company said it would take steps towards an expedited hearing of its application before the court’s summer recess, aiming for June 25 or 26.

“It is Tesla Canada’s position that the government’s exclusion of Tesla Canada from the EV rebate program has and will continue to cause harm to Tesla Canada and its Manitoba customers,” the letter says.

“We have a simple message for (Tesla): Elon, get Donald Trump to stop the tariffs, and then we can talk about the EV rebates.”

Kinew’s comments in the legislature came after Opposition Leader Obby Khan accused him of being a “part-time… patriot premier.”

Khan brought up government contracts tied to the United States, including one for food services through Aramark Canada (an offshoot of an American firm) and money for Musk’s companies — many northern Manitoba communities use Starlink, an internet service.

Later in the day, Khan told reporters Kinew was “celebrating getting sued.”

“I think it’s a pretty immature response,” Khan said, adding Kinew had been “excited” to meet Musk during a trip to Washington in February 2025.

At the time, Kinew was visiting Capitol Hill with fellow premiers to discuss trade. He’d posted on social media about meeting Musk and members of the U.S. Congress.

Khan said he encourages “anything to do with supporting Canadian and Manitoba,” when asked if he supports the decision to end electric-vehicle rebates for Teslas.

The company sued the Ontario government in 2018, claiming it had been harmed after the province cancelled its electric vehicle rebate.

After the Doug Ford government scrapped the program, it promised to honour the incentive for those who purchased an EV from a dealership during a several-month grace period.

Tesla, whose vehicles were largely sold directly by the manufacturer at that time, argued that transition plan was “unfair and unlawful.”

The judge in that case ruled in the automaker’s favour.

Musk, Tesla’s largest individual shareholder, became a politically charged figure after he was tapped to lead the U.S. Department of Government Efficiency, which aimed to cut spending inside the federal government.

The Manitoba EV rebate program began in 2024, offering as much as $4,000. The provincial government didn’t track how much money was given to Tesla users at the time, as it doesn’t break funds down by manufacturer in its files, a spokesperson said.

Manitoba also ended rebates for electric vehicles made in China last year.

gabrielle.piche@winnipegfreepress.com