California Governor Gavin Newsom has proposed a new electric vehicle (EV) rebate program that could leave Tesla out, reigniting tensions with Tesla CEO Elon Musk.
The plan, announced Monday, aims to offer rebates to EV buyers if federal subsidies are repealed under the incoming Trump administration, reports Bloomberg.
Newsom’s office said the proposal includes market-share limits that may exclude Tesla, which dominates EV sales in California. The details are still being negotiated and could change, but the goal is to encourage more automakers to enter the EV market.
Musk criticized the proposal as “insane” on social media, pointing out Tesla’s manufacturing presence in California. Tesla, which accounts for over half of EV sales in the state, has seen its market share drop recently, with sales falling 12.6% this year while overall EV sales rose 1%.
In 2021, Tesla moved its headquarters to Texas, citing frustration with California’s regulations. The relationship became strained during the COVID-19 pandemic when Musk opposed state-ordered factory shutdowns.
Tesla’s vehicles currently qualify for a $7,500 federal tax credit under President Biden’s climate policy, but Newsom’s plan would replace that if Trump eliminates it. The proposal could also bolster Newsom’s standing among progressives while creating distance from Musk, who has aligned himself with Trump’s administration.
California remains a key battleground for EV policy, representing a large share of the U.S. auto market. Newsom’s plan is part of the state’s ongoing effort to promote clean energy and fight potential rollbacks on environmental regulations under Trump’s incoming administration.
So they might…no news.
CA currently disincentives EVs, the road tax for EVs starting in 2020 makes EVs pay an EV tax which is 2-3x what a comparable car would pay in gas tax, plug-in and hybrids don't pay. Over 15 years CA makes more over this tax than their EV incentive so there is a net tax not incentive on EVs not even counting the luxury tax applied to EVs via registration based on vehicle value that does not count the state incentive so they continue to tax you over the MSRP value.
Newsom please remove the EV incentives and gas car incentives and let everyone compete on an equal playing field, EVs will win every time. The only incentive that I think makes sense is the low-income used EV credit as this brings EV ownership to those who need it the most, those living on minimum wage, house cleaners, farm workers, etc who really do care about gas costs.
Subsidize the razor and then make a fortune on razor blades?
You can't make this sh*t up!