Official announcements from California government or legislative changes

California Proposes EV Rebates Excluding Tesla if Trump Repeals $7,500 Credit; Musk Calls Decision 'Insane'

Nov 25, 2024, 07:30 PM

President-elect Donald Trump's administration is reportedly considering repealing the $7,500 federal tax credit for electric vehicles (EVs), which was introduced under the Biden administration's Inflation Reduction Act. This move could significantly impact the auto industry and electric car sales. In response, California Governor Gavin Newsom has announced plans to revive the state's Clean Vehicle Rebate Program to offer state tax rebates for zero-emission vehicle purchases if the federal credit is eliminated. However, under the proposed guidelines, Tesla Inc., the only company manufacturing EVs in California and the market leader, would be excluded from the state's rebate program. Newsom's office stated that this exclusion aims to encourage market competition among other EV manufacturers. Tesla CEO Elon Musk criticized the decision, calling it "insane." The potential repeal of the federal tax credit and California's response highlight tensions between state and federal policies on clean energy and the future of electric vehicles in the United States.