Tesla is suing the Canadian province of Manitoba for cutting the automaker out of its electric vehicle rebate program, and the fight has now reached a courtroom. Why Manitoba cut Tesla offManitoba launched its C$25 million EV rebate program in the summer of 2024, offering buyers up to $4,000 off a new EV priced under $70,000 and $2,500 off a used one. Earlier in 2025, the automaker was banned from Canada’s federal EV rebate program after filing a suspicious number of last-minute claims as that program wound down. In 2018, Ontario’s Ford government wound down its EV rebate but structured the transition to leave Tesla out. Tesla sued, and a judge ruled the treatment “arbitrary and unlawful,” forcing the province to pay eligible Tesla buyers before the program ended.