Official announcement from the Trump administration or relevant federal agency

California to Revive EV Rebates if Trump Repeals $7,500 Credit, Tesla Excluded

Nov 25, 2024, 06:19 PM

President-elect Donald Trump's incoming administration is considering repealing the $7,500 federal tax credit for electric vehicles (EVs), introduced under the Biden administration's Inflation Reduction Act. The move could significantly impact the auto industry and electric car sales. In response, California Governor Gavin Newsom announced plans to revive the state's Clean Vehicle Rebate Program, funded by the Greenhouse Gas Reduction Fund, to offer state tax rebates for EV purchases if the federal credit is eliminated. However, under the proposed guidelines, Tesla Inc., despite manufacturing its EVs in California and accounting for a significant share of the state's EV sales, would be excluded from the state rebates. This exclusion aims to stimulate competition among automakers, according to Newsom's office. Tesla CEO Elon Musk criticized the proposal, stating, "Even though Tesla is the only company who manufactures their EVs in California!"