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
Teen dies after losing control of electric motorcycle in Garden Grove
A 13-year-old boy riding an electric motorcycle in Garden Grove died after veering into the center median, flying into the air and then slamming onto the roadway, authorities said.
The crash took place shortly before 10 p.m. Thursday in the area of Magnolia Street and Larson Avenue, according to the Garden Grove Police Department. The Police Department received word of the incident via a call from Life360, a family safety and location-sharing app with emergency assistance features.
The Santa Ana teen was critically wounded in the crash, police said. He was loaded into an ambulance and taken to a hospital, where he was later pronounced dead.
The boy was traveling at around 35 mph on a black E Ride Pro electric motorcycle when he struck the median and lost control of the vehicle, according to authorities. Electric motorcycles are primarily designed for off-road riding and are not legal to use on California roadways.
The teen’s death is the latest in a spate of serious collisions involving electric motorcycles and dirt bikes — some of which have led to serious injuries, death or charges for parents who allegedly allowed their minors to illegally ride the speedy devices.
An Orange County mother was charged with involuntary manslaughter last week after authorities said an 81-year-old Vietnam veteran died from injuries he suffered when her 14-year-old son slammed into him while riding an e-motorcycle, then fled the scene.
In April, a Yorba Linda father was charged with felony child endangerment after authorities alleged his son ran a red light and was hit by a car while riding a modified e-motorcycle capable of reaching up to 60 mph.
Last week, a 19-year-old riding an e-motorcycle was arrested on suspicion of felony evading police and felony reckless driving. He was accused of leading sheriff’s deputies on a speedy chase through a residential area of Oceanside, blowing past multiple red lights and knocking a deputy off a motorcycle.
Electric bikes, motorcycles and dirt bikes have surged in popularity in recent years and are especially popular among teens. However, while e-bikes generally top out at 28 mph and are legal to ride on the street, many e-motorcycles can go twice as fast and are generally not street legal.
Anyone who witnessed Thursday’s crash in Garden Grove or has a video of the incident is asked to contact Investigator Lang via phone at (714) 741-5823 or email at mlang@ggcity.org.
California
California to give newborns free diapers. What it means for families
Top moments from CNN California governor debate recap
Breaking down key takeaways, highlights, and analysis from the CNN California governor debate, including standout moments and candidate contrasts.
Gov. Gavin Newsom announced that newborn babies in California will start receiving free diapers as part of a new “first-in-the-nation” initiative to support families across the state with the rising cost of living.
Newsom, along with state leaders, met in San Francisco on Friday, May 8 to unveil California’s new partnership with Baby2Baby, a national nonprofit that provides diapers to children in need, and to explain how this new program will provide families with 400 “high-quality” diapers before they leave the hospital.
Over the last six years, families have seen the average cost of diapers increase by 45% or “thousands plus dollars a year,” which has made raising a family unattainable for some, Newsom said during the press conference.
“Every baby born in California deserves a healthy start in life — and that means making sure parents have the basics they need from day one,” Newsom said. “One out of four families skip meals in order to pay for diapers.”
“The biggest problem defined universally, in our cities, our state and our nation, is the issue of affordability. This is what affordability looks like; it’s not a slogan, it’s a box. A box of diapers,” Newsom added.
This new effort will be known as Golden State Start, as California uses its bulk purchasing power to obtain 40 million high-quality diapers in hopes of easing financial strain for families and supporting infant health by helping parents maintain an adequate supply of clean diapers.
“The first days at home with a newborn should be focused on the love, connection, and joy of an expanded family, not stress about affording diapers,” said Kim Johnson, secretary of the California Health and Human Services Agency. “This program helps ensure families can begin that journey with greater stability and peace of mind.”
The program is expected to start at the beginning of this summer in participating California hospitals. The list of participating hospitals was not released at the time of publication, but Newsom noted that the state was in talks with at least 60 hospitals across California.
During the first year of the program, CalRx and Baby2Baby noted that they would prioritize hospitals that serve large numbers of Medi-Cal patients to ensure low-income families benefit early from the program. The state plans to scale the program to additional hospitals and birthing centers over time.
Newsom noted that this program is expected to grow: In 2027, the state is set to purchase 80 million diapers from manufacturers, with the goal of eventually purchasing up to 160 million.
“California families deserve to feel supported during one of life’s more exciting, yet vulnerable transitions,” Jennifer Siebel Newsom, the first partner, said in a press release. “Golden State Start will deliver immediate relief, allowing parents to focus on what matters most — caring for their newborn. Together with Baby2Baby, we can ease the financial burden on California parents while supporting healthier outcomes for babies and their mothers.”
Noe Padilla is a Northern California Reporter for USA Today. Contact him at npadilla@usatodayco.com, follow him on X @1NoePadilla or on Bluesky @noepadilla.bsky.social. Sign up for the TODAY Californian newsletter or follow us on Facebook at TODAY Californian.
California
Nordstrom Rack expands in Southern California with new stores
Nordstrom Rack will open two new Southern California stores next year.
The discount outlet said on Wednesday that it will open new stores in Marina del Rey in the spring of next year and in Torrance later that summer. The locations join 69 Nordstrom Rack locations already operating in the state.
“We’re excited to grow our footprint in the Los Angeles market and introduce new customers to the Nordstrom experience,” Gemma Lionello, president of Nordstrom Rack, said in a news release.
Nordstrom Rack is an outlet version of the upscale retailer Nordstrom, offering merchandise from top brands at a discount.
Bargain retailers have expanded in California recently, benefiting from increasingly cost-conscious customers, who are motivated to spend less by economic anxiety and inflation.
Discount outlets such as Ross, T.J. Maxx and Dollar General have capitalized on the tough economic times and experienced accelerated growth. Ross reported record sales in 2025, up 8% from the year prior.
Bargain retail stores have acquired a larger supply of discounted products by buying unsold merchandise from struggling high-end stores. Customers who feel destabilized financially by tariffs and global conflict have used the stores to try to find lower prices.
The new Nordstrom Rack storefronts will be in Marina Marketplace in Marina del Rey and Rolling Hills Plaza in Torrance.
“The Los Angeles retail market continues to see growth from retailers like Nordstrom looking for anchor space in vibrant areas,” Scott Burns, senior managing director for the company that manages Marina Marketplace, said in a news release.
The bargain outlet boom comes as department stores and malls struggle. Nordstrom, the upscale retailer, closed a Santa Monica location in July. Macy’s shuttered two California locations this year and will reduce its footprint by 30% in 2027.
Shopping malls across Southern California have also struggled to bring sales back as immigration raids continue to scare customers away.
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