Tesla will be included in rebate program wind-down after court defeat: Ontario

Tesla Model X is shown at the 2016 Canadian International Autoshow in Toronto on Thursday, February 11, 2016. (THE CANADIAN PRESS/Nathan Denette)

TORONTO -- Ontario will include Tesla buyers as it winds down its electric vehicle rebate program after a court ruled the government was wrong to exclude cars sold through the automaker's dealerships.

Transportation Minister John Yakabuski says the province will not appeal the decision delivered last week. Tesla launched the case after the government ended the rebate program worth up to $14,000 per vehicle on July 11.

The government said at the time it would extend the rebates to vehicles already sold through dealerships if they were delivered and registered within 60 days.

It later clarified that the extension only applied to vehicles sold through franchised dealerships, which excluded Tesla's Ontario dealerships.

Superior Court Judge Frederick Myers ruled that Tesla's exclusion from a grace period for the program was arbitrary and had singled out the company for harm.

Tesla says it's glad the government "did the right thing" and will ensure all affected electric vehicle owners will receive their incentives.

"For customers who cancelled their orders as a result of the government's initial decision and now wish to renew, we hope the government will work with us to achieve a fair resolution," a company spokesperson said.