California Governor Gavin Newsom proposed a revitalization of the state’s electric vehicle (EV) tax credit program. There is at least one catch, however. Tesla will be excluded from the program, as the proposal has “market share” caps. In other words, the tax credits will only be given to smaller-scale EV manufacturers. As of the writing of this article, Tesla accounts for 55% of all new electric vehicle sales in California for the first three quarters of 2024. The next two highest EV manufacturers are Hyundai and BMW with 5.6% and 5% of the market, respectively. Tesla is also the only company that manufactures EVs in California. This appears to be a blatant anti-Elon Musk move from Gavin Newsom.
The decision to revitalize California’s EV tax credit program will kick in if Trump decides to end the Federal Government’s $7,500 EV tax credit. The Golden State may be forced to do this due to the state’s commitment to zero new internal combustion vehicles sold in the state by 2035. Electric vehicles are notoriously expensive to purchase and can become even more expensive when it comes time to repair critical components, such as the battery which can be the cost of an entirely new vehicle by itself.
SOURCES:
California Proposes EV-Buyer Credit That Excludes Elon Musk’s Tesla – Business Insider
California proposes its own EV-buyer credit — which could cut out Elon Musk’s Tesla
Tesla excluded from qualifying for California EV credits as Newsom pushes back
California moves to accelerate to 100% new zero-emission vehicle sales by 2035 | California Air Resources Board
