Elon Musk blasts Gavin Newsom after Tesla excluded from California plans to restart EV tax credit program

On Monday, California Governor Gavin Newsom announced that if the incoming Trump administration removes the federal zero-emission vehicle (ZEV) tax credit program, his state would reinstate a version of the Clean Vehicle Rebate Program that was phased out in 2023. According to Bloomberg, missing from the list of ZEVs that would be eligible are Tesla’s electric vehicles.

The governor’s office told the outlet that the current proposal includes market-share limitations that would not include Tesla’s popular electric vehicle models, but the details will be under negotiation with state lawmakers and could change in the future. 

The office said, "It’s about creating the market conditions for more of these car makers to take route."

Musk wrote in response to the reporting, "Even though Tesla is the only company who manufactures their EVs in California! This is insane." Tesla’s first factory was set up in Fremont, California, and the company also operates Megafactory Lathrop and other facilities in the state. The headquarters used to be in the state, but was moved to Texas. Currently, Tesla is part of the federal tax credit program that gives buyers a $7,500 tax credit.

Newsom said in a statement, "Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay. We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California. We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute."