The deep blue state of California is set to clash with Trump, with the primary beneficiary Elon Musk being unfairly caught in the crossfire. California plans to push electric vehicle purchase subsidies, excluding Tesla.
According to Bloomberg, on Monday, November 25, California Governor Gavin Newsom announced that if U.S. President-elect Donald Trump abolishes federal subsidies, California plans to offer rebates to electric vehicle buyers. A program that California exited in 2023 could be restarted to replace the $7,500 tax credit policy.
The California Governor's office stated that the current proposal includes market share limits that would exclude Tesla's popular electric vehicle models. Details of the proposal will be discussed with the state legislature and may change in the future. The Governor's office stated that such limits are set 'to create market conditions for more of these types of automakers to establish a foothold.' It is currently unclear if other automakers are also being excluded.
It is reported that the current Governor of California has future hopes of becoming the Democratic presidential candidate, and excluding Tesla could further strain the relationship between Newsom and Musk. Billionaire Tesla CEO Musk posted on his social media platform X that given Tesla's manufacturing operations in the state, this proposal is crazy.
Bloomberg reports that this move would exclude market leader Tesla from a key incentive designed to promote the adoption of electric vehicles amidst a slowdown in market growth.
Tesla's models are indeed eligible for federal credits under Biden's Inflation Reduction Act. On the day California announced the plan, Tesla's stock price fell in early trading on Monday, with losses widening by the close, ultimately down 3.96%.#BabyMarvinf9c7值得拥🈶 