Elon Musk has voiced strong opposition to California Governor Gavin Newsom's proposed plan to introduce electric vehicle (EV) tax incentives that might exclude Tesla.
The proposal comes in response to the anticipated rollback of federal EV tax credits by President-elect Donald Trump's administration, a move Musk has publicly supported despite its potential impact on Tesla's sales.
California's proposed program would provide up to $7,500 in subsidies for EV buyers but might exclude manufacturers with significant market shares, like Tesla, to foster competition among smaller automakers, said Bloomberg.
Newsom's goal is reportedly to create a more balanced EV market and support newer entrants in the industry. Tesla, which holds over 50% of the EV market share in California, could face exclusion under these terms.
Musk Warns of Job Losses Amid Tesla's Potential EV Incentive Exclusion
According to Electrek, Musk criticized the plan, calling it "insane" and warning of its potential impact on California jobs. He highlighted that Tesla remains the only EV manufacturer producing vehicles in the state, with its Fremont factory employing over 20,000 workers.
Musk argued that excluding Tesla from the program could hurt the local economy and job market. "This move undermines the very state that supports our operations," Musk stated.
The discussion has drawn mixed reactions. California Representative Ro Khanna, whose district includes Tesla's Fremont facility, urged against excluding Tesla.
"Tesla produces over 550,000 vehicles annually in Fremont. We must prioritize keeping manufacturing in California," he posted.
Musk's stance on federal tax credits has been a point of controversy. In July, he advocated for eliminating these subsidies, stating that Tesla's competitive edge would allow it to thrive without them.
Critics, however, argue that such policies could hinder EV adoption in the US, a market already lagging in global EV sales.
