California’s plan to offer electric vehicle rebates takes an unexpected turn, excluding Tesla and igniting a clash between Elon Musk and Governor Gavin Newsom.
At a Glance
- California proposes up to $7,500 in tax credits for EV buyers, potentially excluding Tesla
- Elon Musk criticizes the proposal, highlighting Tesla’s California manufacturing
- The exclusion is part of a larger pattern of conflicts between Musk and California
- Tesla accounts for 56% of new EV sales in California
- Musk threatens to relocate more businesses out of California due to policy disagreements
California’s EV Rebate Proposal Sparks Controversy
California’s latest electric vehicle (EV) initiative has ignited a firestorm of controversy, pitting Tesla CEO Elon Musk against Governor Gavin Newsom. The state plans to offer up to $7,500 in tax credits for EV buyers if federal incentives are cut by President-elect Donald Trump. However, the program may exclude Tesla, focusing instead on carmakers with smaller market shares.
This exclusion has drawn sharp criticism from Musk, who pointed out that Tesla is the only company manufacturing EVs in California. The potential rebate program aims to support smaller EV manufacturers, but it overlooks Tesla’s significant contribution to the state’s EV market and economy.
Even though Tesla is the only company who manufactures their EVs in California!
This is insane. https://t.co/EhVeG2TYqT
— Elon Musk (@elonmusk) November 25, 2024
Tesla’s Dominance in California’s EV Market
Tesla’s strong position in California’s EV market is undeniable. The company accounted for 56% of new EV sales in the state during the third quarter. California, home to 35% of all U.S.-registered electric-only vehicles with 1.26 million EVs, represents a crucial market for Tesla and the EV industry as a whole.
“This is insane” – Elon Musk
The potential exclusion of Tesla from the rebate program has raised questions about the state’s approach to supporting EV adoption. Critics argue that penalizing the market leader could hinder overall EV growth in California, while supporters contend that the program aims to level the playing field for smaller manufacturers.
Musk vs. Newsom: A Growing Rift
The EV rebate controversy is just the latest chapter in the ongoing tension between Musk and California’s leadership. This conflict dates back to disagreements over COVID-19 restrictions in 2020, which led to Tesla moving its headquarters to Texas. The rift has only widened with recent policy decisions, including AB 1955, which restricts schools from informing parents about their children’s gender identity changes.
“Gavin’s career is over.” – Elon Musk
In response to these policy disagreements, Musk has threatened to relocate more of his businesses, including SpaceX and X (formerly Twitter), out of California. This potential exodus of high-profile companies has raised concerns about the state’s business climate and its ability to retain innovative enterprises.
Implications for California’s EV Leadership
As the battle between Musk and Newsom intensifies, questions arise about California’s future as a leader in EV adoption and clean energy initiatives. The state’s ambitious climate goals rely heavily on widespread EV adoption, and excluding the market leader from incentive programs could potentially slow progress toward these targets.
“This is a slap in Tesla’s face.” – Gene Munster
The ongoing dispute highlights the delicate balance between supporting market competition and recognizing the contributions of established players. As California navigates this complex landscape, the outcome of the EV rebate program and its impact on Tesla could set a precedent for how states approach the evolving electric vehicle market.
Sources:
- ‘This Is Insane’: Musk Blasts California For Possibly Icing Tesla From EV Credit Program
- ‘Insane’: Musk Rips Newsom After California EV Customer Rebate Might Exclude Tesla
