Tesla Canada has filed a lawsuit against the Manitoba provincial government after the province removed the electric vehicle maker from its subsidy program, according to an automotive weekly report. The automaker claims that since its exclusion, residents of Manitoba have been "unfairly and unreasonably deprived" of at least C$560,000 (approximately 2.96 million yuan) in potential subsidies for purchasing Tesla vehicles.
The Manitoba government announced in March 2025 that it would exclude Tesla from its EV subsidy program, citing a response to US President Donald Trump's tariffs on Canadian goods. CEO Elon Musk's high-profile support for Trump and his role in leading a US government efficiency department to streamline bureaucracy were cited as triggers for retaliation by the Canadian provincial government. Beyond Manitoba, Tesla has faced a series of backlash actions in Canada in 2025, including protests at showrooms and exclusion from subsidy programs in several provinces.
Where to begin
In May of this year, Tesla applied for a judicial review with the King's Court, arguing that its exclusion from the subsidy program was "unreasonable and procedurally unfair," causing "substantial and unreasonable harm" to the company and consumers. The lawsuit states that Tesla Canada employs about 11 staff in Manitoba, operates 44 EV charging stations, does not participate in US government operations, and that no other EV manufacturer with US ownership or operations in the US has been excluded from the program.
The Manitoba government and the Manitoba Public Insurance Corporation (MPI) are seeking to have the court dismiss Tesla's application, citing limited court authority over public policy matters and the timing of the lawsuit, which they deem too late. The province's EV subsidy program totals C$25 million, offering up to C$4,000 in subsidies for new vehicles under C$70,000 and C$2,500 for used vehicles, managed by MPI. Tesla seeks a court ruling that owners who purchased vehicles during the exclusion period are eligible for retroactive subsidy reimbursement.
Court records indicate that a previously requested summer expedited hearing was denied by a judge, and the formal trial is scheduled for early October.
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