California Governor Gavin Newsom is rolling out a plan to offer rebates to people who buy electric cars other than Tesla, a move that has emerged as a fierce critic of Democrats and Tesla Inc.'s chief executive officer. (CEO) Elon Musk called it “insane.” Supporter of President-elect Donald Trump.
Newsom on Monday announced details of his plan to extend the expired Clean Vehicle Rebate Program if President Trump follows through on his promise to eliminate federal tax credits for electric vehicle buyers.
President Trump previously promised to eliminate the federal electric vehicle tax credit worth up to $7,500 for new zero-emission vehicles.
There is also a $4,000 credit for used items.
But when Musk later became a supporter and adviser, Trump softened his stance.
California's defunct Clean Vehicle Rebate Program offered up to $2,500 in rebates for electric vehicles.
Newsom's proposed rebates could exclude Tesla and other automakers in an effort to encourage more market competition and innovation, the governor's office said. However, that depends on negotiations with the state legislature.
In a post about X, Musk called the possible exclusion of Tesla “insane.” He pointed out that Tesla is the only company that manufactures EVs in California.
About 42% of the rebates were paid to people who bought or leased Tesla vehicles under the state's previous Clean Vehicle Rebate Program, according to data from the California Air Resources Board.
Newsom on Monday called on the state Legislature to convene a special session to support state legislation that would “stand up to Trump” by providing more funding to the attorney general's office to fight federal challenges. Ta.
President Trump criticized Newsom on social media after the governor called for a special legislative session to address California's high cost of living and the state's homelessness crisis.
President Trump said Newsom “blocked everything great he could do to 'Make California Great Again.'”
Newsom's office said the move to exclude Tesla was made to allow other competitors to “take root.”
“Consumers continue to prove skeptics wrong. Zero-emission vehicles are here to stay,” Newsom said in a statement.
“We're not going back on a clean transportation future. We're going to make it more affordable for people to drive non-polluting vehicles.”
Dan Ives, a senior analyst at Wedbush, said Newsom's proposal is a “political battle” that could spark a “Game of Thrones battle” between the Democratic governor and Musk, the world's richest man. “This is a disciplinary action,” he said.
“This is clearly a political move by Newsom and California against Musk, who now occupies the front seat of President Trump and is pushing for these federal tax credits, among countless other things on the federal front. “It's going to play a key role in ultimately erasing it,” Ives said.
Wedbush analysts said Mr. Newsom's proposal risks Mr. Musk's decision to move more workers from Tesla's Fremont, Calif., factory to its Austin, Texas, Gigafactory.
Musk moved Tesla's headquarters from Palo Alto, California, to Austin in 2021 after publicly clashing with state regulators over coronavirus-era regulations and lockdowns.
In July, Musk said he would move X and SpaceX from California to Texas. The mogul said the “last straw” was Newsom signing a new law that prohibits school districts from requiring teachers to notify parents of changes in their child's gender identity.
with post wire
