WINNIPEG — The Manitoba government says it is facing potential legal action over its decision to halt rebates for the electric vehicles produced by automaker Tesla.
Premier Wab Kinew says the government has received a notice from Tesla Motors Canada that it intends to seek a judicial review of the decision.
Kinew says the government will only consider reversing its decision if the United States drops tariffs on Canadian goods.
The NDP government launched rebates in 2024 of up to $4,000 for people who buy electric vehicles.
Last year, the government stopped the rebates for Tesla vehicles and vehicles made in China in retaliation for tariffs.
The premier’s office distributed a letter from Tesla that says the move to end the rebates was procedurally unfair and done for an improper purpose.
Company officials were not immediately available for comment.
This report by The Canadian Press was first published May 28, 2026.
Steve Lambert, The Canadian Press
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