The decision follows the Ontario Superior Court of Justice on Tuesday striking down a transition program, including the Electric and Hydrogen Vehicle Incentive Program, set up by the new Ontario government, which excluded Tesla customers from qualifying for rebates.
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The incentive program provides rebates of up to C$14,000 ($10,640) for people who bought electric cars.
"I have directed the ministry to expand the wind-down process," minister of transportation John Yakabuski said in a statement on Friday.
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“Ending the Electric and Hydrogen Vehicle Incentive Program could save Ontario taxpayers up to an estimated $1 billion over four years,” he said.
The ministry said on Friday incentives will be provided as long as certain conditions were met.
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