California
California proposes its own EV buyer credit — which could cut out Elon Musk's Tesla
- Gov. Gavin Newsom plans to revive California’s EV rebate if Trump ends the federal tax credit.
- But Tesla, the largest maker of EVs, would be excluded under the proposal.
- Elon Musk criticized Tesla’s potential exclusion from the rebate.
California Gov. Gavin Newsom is preparing to step in if President-elect Donald Trump fulfills his promise to axe the federal electric-vehicle tax credit — but one notable EV maker could be left out.
Newsom said Monday if the $7,500 federal tax credit is eliminated he would restart the state’s zero-emission vehicle rebate program, which was phased out in 2023.
“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,” Newsom said in a statement. “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.”
The rebates for EV buyers would come from the state’s Greenhouse Gas Reduction Fund, which is funded by polluters of greenhouse gases under a cap-and-trade program, according to the governor’s office.
But Tesla’s vehicles could be excluded under the proposal’s market-share limitations, Bloomberg News first reported.
The governor’s office confirmed to Business Insider that the rebate program could include a market-share cap which could in turn exclude Tesla or other EV makers. The office did not share details about what market-share limit could be proposed and also noted the proposal would be subject to negotiations in the state legislature.
A market-share cap would exclude companies whose sales account for a certain amount of total electric vehicle sales. For instance, Tesla accounted for nearly 55% off all new electric vehicles registered in California in the first three quarters of 2024, according to a report from the California New Car Dealers Association. By comparison, the companies with the next highest EV market share in California were Hyundai and BMW with 5.6% and 5% respectively.
Tesla sales in California, the US’s largest EV market, have recently declined even as overall EV sales in the state have grown. Though the company still accounted for a majority of EV sales in California this year as of September, its market share fell year-over-year from 64% to 55%.
The governor’s office said the market-share cap would be aimed at promoting competition and innovation in the industry.
Elon Musk, who has expressed support for ending the federal tax credit, said in an X post it was “insane” for the California proposal exclude Tesla.
The federal electric vehicle tax credit, which was passed as part of the Biden administration’s Inflation Reduction Act in 2022, provides a $7,500 tax credit to some EV buyers.
Musk, who is working closely with the incoming Trump administration, has expressed support for ending the tax credit. He’s set to co-lead an advisory commission, the Department of Government Efficiency, which is aimed at slashing federal spending.
The Tesla CEO said on an earnings call in July that ending the federal tax credit might actually benefit the company.
“I think it would be devastating for our competitors and for Tesla slightly,” Musk said. “But long-term probably actually helps Tesla, would be my guess.”
BI’s Graham Rapier previously reported that ending the tax credit could help Tesla maintain its strong standing in the EV market by slowing its competitors growth.
Prior to the EV rebate proposal, Newsom has already positioned himself as a foil to the incoming Trump administration. Following Trump’s election win the governor called on California lawmakers to convene for a special session to discuss protecting the state from Trump’s second term.
“The freedoms we hold dear in California are under attack — and we won’t sit idle,” Newsom said in a statement at the time.
California
California’s gubernatorial race heats up as Newsom’s term nears end, with many contenders
FRESNO, Calif. (FOX26) — In just over a year, Gavin Newsom’s term as California’s governor will come to an end, capping off nearly eight years in office.
Now the question is – who will take over once he steps down?
We spoke to political scientist Nathan Monroe about what could be one of Californias most unpredictable gubernatorial races yet.
With Governor Gavin Newsom’s term ending, the race to replace him begins.
This race will determine who leads the worlds fifth largest economy at a time when California is facing issues such as housing and affordability.
Californias next gubernatorial election is shaping up to be crowded – and for the first time in years – there’s no incumbent on the ballot.
“You say, well, just which democrat is going to win, right? Like, sort of republicans don’t have a shot. But what we have to keep in mind, right, is that the rules of elections matter. And in California, we have the top two primary system,” said Nathan Monroe, a Political Science Professor at UC Merced.
More than a dozen candidates are vying for the spot.
On the democratic side, contenders include former U.S. Secretary of Health and Human Services Xavier barrera, former U.S. Representative Katie Porter, Representative Eric Swalwell, former Los Angeles Mayor Antonio Villaraigosa, and former State Controller Betty Yee.
Political experts say the size of the field could make turnout and name recognition decisive and could lead to unexpected results in the primary.
“But if you divide that pie up by just two, and you divide the democratic pie up, which is admittedly a larger pie, by 7 or 8, the concern you get here is that democrats are going to lose out on even running to the general election. So even though there might be more democratic votes to be found in California for governor, they might not have a shot to cast those ballots for a democrat on the general election ballot,” said Monroe.
Monroe says party leaders may need to step in soon.
“I think the concern has to be among voters and I’m sure among the party leaders, so to speak, right, the party leaders sort of amorphously, is that they’ve got to figure out a way to delicately, you know, assure some candidates out of the race and figure out which candidates those should be and figure out how to manage those personalities and try to coordinate all the things that go in and around a gubernatorial election,” said Monroe.
On the Republican side, former Riverside County Sheriff Chad Bianco and Fox News contributor Steve Hilton.
With just a few months from the midterm elections, Monroe says both parties need to organize.
“What’s happening behind the scenes for the parties to try to coordinate themselves to make sure that the field that they offer to voters in June is a field that gives them the best chance for their best candidate to go forward to the general election,” said Monroe.
The primary election is set for June, with the general election in December.
California
Heavy rain, high tides cause flooding along stretch of Northern California
CORTE MADERA, Calif. (AP) — Heavy rain and high tides believed to be the most severe in two decades caused flooding in parts of Northern California on Saturday, prompting road closures and rescues of residents trapped in their cars.
Roadways through a 15-mile (24-kilometer) stretch from the Sausalito area to San Rafael were flooded after a downpour coincided with record-breaking “ King Tides,” Marin County Sheriff’s Sgt. Michael Dobbins said.
No injuries were reported but authorities were called to assist when cars got stuck in floodwater as high as three and four feet (1.1 and 1.2 meters), he said.
“There is a lot of water in the roadways,” Dobbins said, adding the tides were reportedly the highest in more than two decades. “Along with heavy rains, it just created the perfect storm for flooding on the streets.”
Authorities in the communities near San Francisco asked residents to stay home wherever possible until waters recede. Some residents kayaked along what normally would be city streets. Others waded out in water that passed their knees.
A flood warning was in place for the San Francisco area until 2 p.m. Saturday and an advisory until 2 p.m. Sunday, according to the National Weather Service in San Francisco.
King Tides occur when the sun, moon and Earth are in alignment and the moon is in its closest position to the Earth, creating a stronger gravitational pull.
California
UPDATE: Crash at California/Dakota
10:06 PM: Police are arriving at the scene of a two-vehicle crash reported at California/Dakota, with at least two people hurt.
11:06 PM: Police have just reopened the street. We went to the scene after a report that one vehicle had ended up on the lawn of a church – First Lutheran Church of West Seattle (WSB sponsor) – is on the southwest corner – but all we could see was one vehicle on the sidewalk. We’re following up with SFD regarding the people who were hurt.
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