California is moving forward with plans that would exclude Tesla from its new EV tax credit program, even though Tesla is the only automaker producing electric vehicles in the state. Governor Gavin Newsom’s office confirmed the proposal as discussions unfold about revising the state’s Clean Vehicle Rebate Program, which ended in 2023 after subsidizing over 594,000 vehicles with $1.49 billion.
The controversy intensified after Tesla CEO Elon Musk criticized the move on X, highlighting Tesla’s unique manufacturing presence in California. “Even though Tesla is the only company who manufactures their EVs in California! This is insane,” Musk wrote. Tesla’s Fremont factory, capable of producing 650,000 vehicles annually, is a cornerstone of the state’s EV production.
The Government always see things through their political glasses.
They seek to punish people that disagree with their views.
Shameful, they don't represent ALL the people.
— floridanow1 (@floridanow1) November 25, 2024
List of major companies @GavinNewsom has run out of CA already. Close to a trillion in revenue and counting :
– Tesla
– Oracle
– Charles Schwab Corp.
– Palantir Technologies
– Hewlett Packard Enterprise (HPE)
– Chevron
-Symantec
– Snowflake
– AECOM
– Pabst Brewing Company…— BlackApple.eth 🛡️ (@BlackApple) November 25, 2024
The proposal aligns with potential changes at the federal level. President-elect Donald Trump’s transition team is reportedly considering eliminating the $7,500 federal EV tax credit, prompting Newsom’s administration to craft state alternatives. The governor’s office stated the proposed tax credits would prioritize fostering competition and supporting new market entrants, though details remain under negotiation.
Tesla shares fell 4% following the announcement, reflecting investor concern over the impact of losing state incentives. Musk, who has previously advocated ending subsidies for EVs and fossil fuels, now finds his company at odds with state policies despite its significant contributions to California’s economy and EV leadership.
Sources: