November 26, 2024 – On Monday, California Governor Gavin Newsom declared that if President Trump decides to abolish the federal tax credit for electric vehicles (EVs) upon taking office, the state of California will introduce a separate rebate program for EV buyers.
However, he also mentioned that the current proposal excludes Tesla’s popular models, and the specifics need to be negotiated with the state legislature, suggesting possible adjustments. The governor’s office stated, “This is to create market conditions that will allow more automobile manufacturers to take root.”
In response, Elon Musk expressed his disbelief, noting that Tesla is the only manufacturer producing electric vehicles in California, calling the exclusion “crazy.”
Previously, the United States offered a tax credit of up to $7,500 to buyers of eligible electric vehicles. However, Trump appears to be considering eliminating this policy.
Newsom indicated that California might revisit a clean vehicle rebate program to ease the burden on car buyers if Trump scraps the federal tax credit. The program, which had supported 594,000 vehicles and saved 456 million gallons of fuel, was phased out in 2023.
He emphasized, “Consumers continue to prove the skeptics wrong with their wallets – new energy vehicles are here to stay. We won’t turn back on the future of clean transportation – we will make it easier for people to afford pollution-free vehicles.”
The governor called for a special session of the state legislature to address federal challenges by providing additional funding to the attorney general’s office and establishing state laws as a “shield against Trump.”
However, it remains unclear how much funding the California government can allocate. According to a report released last week by the nonpartisan Legislative Analyst’s Office, early budget forecasts suggest that the state could face a $2 billion deficit next year.
Newsom’s office reported that California has sold over 2 million zero-emission vehicles. In recent years, the state has passed multiple policies to gradually phase out fossil fuel-based cars, trucks, trains, and lawn mowers.
