A new electric vehicle (EV) incentive proposal in California has raised concerns, particularly regarding the exclusion of Tesla from the program. Governor Gavin Newsom is considering an initiative to provide rebates for car buyers in the state, should President-elect Donald Trump eliminate the federal EV tax credit. However, the proposal notably leaves out Tesla, despite the company being the only car manufacturer that produces vehicles in California.
This exclusion is particularly surprising given that Tesla’s Model Y and Model 3 are among the best-selling EVs in California. The company also plays a vital role in the state's economy, employing thousands of residents and contributing significantly to local manufacturing. As a result, the exclusion of Tesla from the new incentive program has sparked controversy.
Tesla CEO Elon Musk voiced his frustration on social media, calling the move “insane” and criticizing the governor’s proposal. In a later post, Musk emphasized that Tesla’s California-based manufacturing creates local jobs, stating, “Tesla is the only one making cars in California, so this move hurts jobs in California.”
Democratic Congressman Ro Khanna echoed Musk’s concerns, calling it "foolish" to intentionally exclude Tesla from the incentive program. Khanna, who represents Fremont, where Tesla’s main production facility is located, reminded state leaders of the negative consequences of sidelining Tesla in the past. He pointed out that excluding Tesla would be a huge misstep, similar to the 2021 incident when the Biden administration excluded the company from its EV summit.
Despite these concerns, a spokesperson from the governor’s office responded that the new initiative aims to “promote innovation and competition in the ZEV market.” However, with Tesla’s significant role in California’s EV landscape, the exclusion remains a point of contention.
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