Province, MPI want court to toss Tesla bid for review of exclusion from EV rebate program

The provincial government and Manitoba Public Insurance have filed court papers asking a judge to throw out the Canadian subsidiary of Tesla’s application for a judge to review the province’s exclusion of the automaker from a taxpayer-funded rebate program.

The company filed its application for judicial review in the Court of King’s Bench in late April, seeking to have a judge review and overturn the Manitoba government’s decision to exclude Tesla vehicles from its rebate for electric vehicle purchases and leases.

The company argues the decision was unreasonable and procedurally unfair.

The government announced Tesla’s exclusion from the program, which MPI administers, in March 2025 under the province’s “commitment to be elbows up” in retaliation for tariffs imposed by United States President Donald Trump who, at the time, had given Elon Musk, the CEO of Texas-based Tesla Inc., a job in his administration.

In separate notices of motion earlier this month, the provincial government and the public auto insurer ask for Tesla’s application to be struck.

The government argues there are several grounds to dismiss the application, including that it raises issues that fall outside of the court’s jurisdiction and its proper constitutional role, and that the relief it seeks would require the court to supervise, direct or review matters of public policy that should not be decided by a judge.

Alternatively, the province argues, Tesla does not have sufficient standing to file the claim in Manitoba and as a result, it does not have a reasonable set of facts to proceed upon, making it an abuse of court process.

The province also says Tesla’s application should be struck because it took too long file its notice after becoming aware of the government’s 2025 decision to exclude its vehicles from the rebate program.

“It would be unfair and contrary to the principles of fundamental justice, certainty and good administration to permit the application to proceed,” the government argues.

The government’s notice, filed July 9, also seeks legal costs from Tesla.

MPI, in a notice filed July 17, argues the automaker was unreasonably delayed in filing its application after it became aware of the province’s decision, without a reasonable justification.

The auto insurer says MPI has and will suffer prejudice because of Tesla’s delay in filing its application and argues it would not be in the public interest to allow Tesla’s application to proceed. MPI is also seeking legal costs from Tesla.

The province’s motion is set to be heard next Wednesday, and MPI’s is to be heard Aug. 12.

A judge has not yet heard Tesla’s full argument. In June, lawyers for the company had sought an expedited court hearing on the application, which Justice Sarah Inness rejected after a brief hearing.

erik.pindera@freepress.mb.ca