California Plans EV Rebates as Trump Administration Considers Ending Federal Subsidies

Governor Newsom proposes state incentives to counter potential federal cuts, but Tesla may face exclusion under new rules.

California Governor Gavin Newsom announced a proposal to reinstate state-level EV rebates if the incoming Trump administration eliminates federal EV tax credits.
The proposed program, modeled on California's previous Clean Vehicle Rebate initiative, could provide up to $7,500 for eligible buyers but may exclude Tesla based on market share criteria.
Tesla CEO Elon Musk criticized the potential exclusion as unfair, noting Tesla is the only EV manufacturer based in California, a sentiment echoed by Congressman Ro Khanna.
Experts predict federal EV tax credit elimination could lead to a 27% drop in EV sales nationwide, with 317,000 fewer vehicles on the road annually.
Analysts warn the move could disrupt EV market growth, while Newsom's plan aims to maintain affordability and support California's clean transportation goals.