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California proposes its own EV buyer credit — which could cut out Elon Musk's Tesla

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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.”

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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.

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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.

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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.”

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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.





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Supreme Court blocks California law limiting schools from telling parents about trans students

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Supreme Court blocks California law limiting schools from telling parents about trans students


The U.S. Supreme Court has temporarily blocked a California law that limited when schools could require staff to disclose a student’s gender identity, clearing the way for schools to tell parents if their children identify as transgender without getting the students’ approval.

Rear view of multiracial students with hands raised in classroom at high school

The decision came after religious parents and educators, represented by the Thomas More Society, challenged California school policies aimed at preventing staff from disclosing a student’s gender identity.

Erwin Chemerinsky, dean and professor of law at the University of California Berkeley School of Law, said the ruling favors parents’ ability to be informed. “The Supreme Court today rules in favor of the claim of parents to be able to know the gender identity and gender pronoun of the children,” Chemerinsky said.

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FILE:{ }transgender flag against blue sky background { }(Photo: AdobeStock)

FILE:{ }transgender flag against blue sky background { }(Photo: AdobeStock)

The decision temporarily blocks a state law that bans automatic parental notification requirements if students change their pronouns or gender expression at school. The Thomas More Society called the decision a major victory for parents, saying the court found California’s policy likely violates constitutional rights.

Chemerinsky said the Supreme Court’s action is an emergency ruling. “This law is now put on hold. So what this means is that schools can require that teachers and other staff inform parents of the gender identity or gender pronouns of children,” he said.

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Kathie Moehlig, founder and executive director of Trans Family Support Services, said she is concerned about how the ruling could affect students who do not have supportive families.

“I am really concerned about our kids that do come from these non affirming homes, that they know that they’re going to get in trouble, that they’re going to possibly have violence brought against them possibly kicked out of their homes,” Moehlig said.

Moehlig said parents should eventually know, but that the conversation should happen when a student feels safe. “Our students are going to be less inclined to confide in any adults that might be able to help to get them access to mental healthcare, to a support system. They may still tell their peers but they’re certainly not going to tell any other adult,” she said.

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Equality California, a LGBTQ+ civil rights organization, shared a statement:

Equality California, the nation’s largest statewide LGBTQ+ civil rights organization, released the following statement from Executive Director Tony Hoang in response to today’s U.S. Supreme Court shadow docket ruling in Mirabelli v. Bonta regarding California’s student privacy protections for transgender youth. Today’s decision by the U.S. Supreme Court to intervene in this case is deeply disturbing. By stepping in on an emergency basis, the Court has effectively upended California’s student privacy protections without hearing full arguments and before the judicial process has run its course. While not surprising, this move reflects a dangerous willingness to short-circuit the established judicial process to dismantle protections for transgender youth. While this case continues to be litigated, the ruling revives Judge Benitez’s prior decision, which broadly targets numerous California laws protecting transgender and gender-nonconforming students — threatening critical safeguards that prevent forced outing and allow educators to respect a student’s affirmed name and pronouns at school. These protections exist for one reason: to keep students safe and ensure schools remain places where young people can learn and thrive without fear. To be clear: today’s decision does not impact California’s SAFETY Act, which prohibits school districts from adopting policies that forcibly out transgender students. The SAFETY Act remains in full effect, and we will continue defending it. Transgender youth deserve dignity, safety, and the freedom to learn without fear. We will never stop fighting for transgender youth and their families. Equality California will continue working with parents, educators, and advocates to ensure schools remain safe, welcoming, and focused on the success and well-being of every student.

The case now returns to the U.S. Court of Appeals for the Ninth Circuit, which will decide whether the California law is constitutional.



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Rep. Kevin Kiley announces run in California’s redrawn 6th Congressional District

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Rep. Kevin Kiley announces run in California’s redrawn 6th Congressional District



Congressman Kevin Kiley has announced his plan to run in California’s newly redrawn 6th district.

In a statement on Monday, Rep. Kiley revealed he had considered running in the 5th District – which could have set up a possible showdown between two current Republican officeholders.

“It’s true that I was fully prepared to run in the new 5th, having tested the waters and with polls showing a favorable outlook in a “safe” district. But doing what’s easy and what’s right are often not the same,” Kiley stated.

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Kiley currently represents California’s 3rd district, which originally comprised counties making up much of the back spine of the state.

As of the Prop. 50 redistricting push, the 3rd district was redrawn for the 2026 midterm election to lean toward the Democratic Party – with those eastern spine of California counties lopped off and more of Sacramento County, including Rancho Cordova, added.

California’s new 6th district is now comprised of Rocklin, Roseville, Citrus Heights, much of North and East Sacramento, and the city of West Sacramento. Democratic Rep. Ami Bera currently represents the district, but will be running for the new 3rd district in 2026.

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Other declared candidates for the 6th district include Democrats Lauren Babb Thomlinson, Thien Ho, Richard Pan, Kindra Pring, Tyler Vandenberg, and Republicans Christine Bish, Craig DeLuz, and Raymond Riehle. 

Kiley was first elected to the House in 2022 and was reelected in 2024. 





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Preliminary magnitude 3.3 earthquake strikes near San Ramon, USGS says

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Preliminary magnitude 3.3 earthquake strikes near San Ramon, USGS says


SAN RAMON, Calif. (KGO) — An earthquake with a preliminary magnitude of 3.4 struck near San Ramon at 11:21 p.m. Sunday, the U.S. Geological Survey said.

USGS said the tremor was about 8.4 km in depth.

According to the Geological Survey, people typically report feeling earthquakes larger than about magnitude 2.5.

The closer to the surface an earthquake occurs, the more ground shaking and potential damage it will cause.

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No injuries have been reported.

This is the latest quake in San Ramon, which has seen multiple strings of tremors in the past several months.

Bay City News contributed to this report.

MAP: Significant San Francisco Bay Area fault lines and strong earthquakes
Zoom in on the map below and compare where you live to the significant faults and where strong earthquakes have struck in the Bay Area.

Stay with ABC7 News for the latest details on this developing story.

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