Official announcements from the California government or relevant state departments

Newsom Proposes EV Rebates Excluding Tesla; Musk Calls Exclusion 'Insane'

Nov 25, 2024, 10:17 PM

California Governor Gavin Newsom has announced plans to revive the state's electric vehicle (EV) rebate program if President-elect Donald Trump eliminates the federal $7,500 EV tax credit, a move that could lead to a drop in EV sales. Under Newsom's proposal, Tesla's vehicles would be excluded from the state rebates due to 'market-share limitations' intended to encourage competition among automakers. This has drawn criticism from Tesla CEO Elon Musk, who called the exclusion 'insane,' noting that Tesla is the only company that manufactures EVs in California, producing over 550,000 vehicles in Fremont and employing over 80,000 people directly and indirectly in the state. Democratic Congressman Ro Khanna also criticized the proposal, urging that Tesla should not be excluded. Critics argue that excluding Tesla—which accounts for nearly 55% of all new electric vehicles registered in California—is unfair and counterproductive.