Gavin Newsom’s Proposed California EV Credit Would Exclude Elon Musk’s Tesla

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by Lucas Nolan, Breitbart:

A proposal by California Gov. Gavin Newsom (D) to offer rebates to electric vehicle buyers if President Donald Trump repeals federal subsidies on EVs would exclude Elon Musk’s  Tesla from the program.

Bloomberg reports that in a move that could escalate tensions between California Gov. Gavin Newsom (D) and Elon Musk, Tesla’s electric vehicles would be shut out from consumer rebates under a new proposal unveiled by Newsom on Monday. The governor plans to offer rebates to EV buyers if US President-elect Donald Trump repeals a federal subsidy, potentially rebooting a program California phased out in 2023.

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According to Newsom’s office, the current proposal includes market-share limitations that would exclude most or all of Tesla’s EV models. The details, including Tesla’s possible omission from the credits, will be negotiated with the state legislature and could change. The governor’s office stated that the move is “about creating the market conditions for more of these car makers to take root.”

Tesla CEO Elon Musk criticized the proposal on his X/Twitter platform, calling it “insane” and citing the automaker’s manufacturing presence in the state.

Excluding Tesla from the incentive program could be seen as a blow to the company, as it aims to spur wider adoption of EVs at a time of slowing growth for all-electric vehicles. Tesla’s models do qualify for the current federal credit, which was introduced as part of President Joe Biden’s Inflation Reduction Act.

The move could also bolster Newsom’s standing on the left as he renews his clash with Musk. Tensions between the two have been strained for years, with Musk moving Tesla’s headquarters to Texas in 2021, partly due to frustration with California’s politics. During the coronavirus pandemic, Musk had angrily denounced state orders to close Tesla’s Fremont factory, labeling them “fascist.”

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