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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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California regulators kill charity fireworks for America’s 250th, sparking outrage

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California regulators kill charity fireworks for America’s 250th, sparking outrage


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As the nation prepares for its 250th Independence Day celebration, a decades-long California Fourth of July fireworks tradition that has raised millions for local children’s programs is going dark this year after the California Coastal Commission rejected a final effort to keep it alive, citing environmental concerns to protect the bay.

“We’ve raised over the past 14 years $2 million for kids programs here in Long Beach,” event organizer John Morris told Fox News Digital, adding the July 3 event is fully funded by the local community.

“This community pays for everything — everything. City fees, and the city doesn’t give us a break. We pay $20,000 to the city for police and fire, which I’m fine with, because there’s 100,000 people enjoying the fireworks,” said Morris, a Long Beach resident and business owner.

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Morris, who owns the Boathouse on the Bay restaurant, had planned a scaled-up fireworks display this year to mark America’s 250th Independence Day.

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Long Beach residents have enjoyed the fireworks organized by John Morris for over a decade. (Scott Varley/MediaNews Group/Torrance Daily Breeze via Getty Images)

In January, Coastal Commission staff rejected the proposal, and last week commissioners unanimously upheld that decision despite an appeal backed by local, state and federal officials.

Regulators warned Morris last year that 2025 would likely be the final year for fireworks at the event, as they continue pushing organizers to switch to drone shows they say are more environmentally friendly.

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The decision stands in contrast to other approvals by the commission, including a permit granted to SeaWorld allowing up to 40 nights of fireworks.

“They get 40 nights in Mission Bay. All I’m asking for is 20 minutes — it doesn’t make any sense,” Morris said.

Morris, 78, also pushed back on the environmental concerns cited by the commission, pointing to years of testing around the event.

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Due to the lack of fireworks, Morris has decided to cancel the July 3rd celebration.

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“We’ve had 10 years of environmental studies,” Morris said. “We test the water before and after the fireworks and send a robotic camera into the bay to check for debris — there’s never been any. It’s been spotless.

“We’ve also had eight years of bird reports to make sure we’re not harming wildlife. We’ve never had an issue. We’ve never been written up one time. So what is it really about?”

Joshua Smith, a spokesman for the California Coastal Commission, told Fox News Digital that permits are determined on a case-by-case basis, citing environmental concerns to “protect the bay.”

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Organizer John Morris said environmental studies are regularly conducted to measure the impact of the fireworks show on the bay. (Allen J. Schaben/Los Angeles Times via Getty Images)

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Smith said Morris was approved for a permit to hold a drone show in lieu of fireworks. Morris told Fox News Digital such a show would cost about $200,000 — roughly four times more than traditional fireworks.

Smith confirmed that SeaWorld received a permit allowing 40 nights of fireworks. When pressed on the discrepancy, he reiterated that decisions are made individually and declined to provide further details.

Morris said the loss of the fireworks show will be felt across the community, from local businesses to families who have made the event an annual tradition.



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Billionaire Steyer’s spending binge dwarfs rival campaigns in California governor’s race

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Billionaire Steyer’s spending binge dwarfs rival campaigns in California governor’s race


LOS ANGELES (AP) — In the wide-open race for California governor, billionaire Tom Steyer is on a spending binge.

The hedge fund manager-turned-liberal activist is using his personal fortune to saturate TV screens and mobile phones with advertising, while his competitors accuse him of trying to use his vast wealth to buy the state’s most powerful job.

Steyer’s ads — in which he promises to bring down household costs or rails against federal immigration raids — appear inescapable at times in heavily Democratic Los Angeles, the state’s largest media market. Data compiled by advertising tracker AdImpact show Steyer has spent or booked over $115 million in ads for broadcast TV, cable and radio — nearly 30 times the amount of his nearest Democratic rival.

If he makes it through the June 2 primary election, Steyer could easily eclipse the 2010 record set by Republican Meg Whitman, who spent $178.5 million in a losing bid for governor, much of it her own money. At the time, it was the costliest campaign for statewide office in the nation’s history.

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Even when ad buys from all his major competitors are combined, along with ad purchases by independent committees supporting candidates, Steyer is outspending the field by tens of millions of dollars.

“Billionaire money is flooding our state in an attempt to buy this election,” former U.S. Rep. Katie Porter, one of Steyer’s chief rivals, warned her supporters this month.

Mail-in ballots are set to go out to voters next month. Steyer is among a crowd of candidates hoping to seize a spotlight after former Democratic U.S. Rep. Eric Swalwell’s dramatic departure from the race following sexual assault allegations that he denies.

But while Steyer has ticked up in polling amid his spending splurge, he has not broken away from the field, leaving some wondering if he’s getting value for his dollars.

“If your first round of ads doesn’t move you dramatically (in the polls), the third, fourth, fifth, six, seventh and eighth rounds won’t either,” said veteran Democratic strategist Bill Carrick, who for years advised the late Democratic U.S. Sen. Dianne Feinstein. “There is something inherently holding Steyer back.”

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In recent prior campaigns for governor, at this stage a leading candidate was taking control of the race. This year, voters appear to be shrugging at a contest that lacks a star candidate among seven leading Democrats and two Republicans.

“Somehow the campaign is frozen,” Carrick added.

History shows that money doesn’t always translate into votes.

Billionaire developer Rick Caruso spent over $100 million in 2022 in his bid to become Los Angeles mayor, much of it his own money, but he was handily defeated by Mayor Karen Bass, who spent a fraction of Caruso’s total. Billionaire former New York City Mayor Michael Bloomberg spent more than $1 billion of his own money on his 2020 presidential bid before dropping out. And Steyer’s money was unable to lift him into contention in the 2020 presidential contest, when he dropped out early in the year after a poor finish in the South Carolina primary.

Steyer has never held elected office.

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In a 2019 interview with The Associated Press, Steyer was asked what he would say to people who think he’s trying to buy the presidency.

“I don’t think that’s possible,” Steyer said at the time, before adding, “I’m never going to apologize for succeeding in business. That’s America, right?”

His campaign did not respond directly when asked about similar criticism facing his run for governor.

“Tom now stands as the only Democrat with the grassroots energy, institutional backing and resources to advance to the general election,” spokesperson Kevin Liao said in a statement.

The governor’s race was recently reordered by two developments: Swalwell, a leading Democrat, abruptly withdrew from the race then resigned from Congress, following sexual assault allegations. Meanwhile, President Donald Trump endorsed conservative commentator Steve Hilton.

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Still, there is no clear leader.

Polling in late March and early April by the nonpartisan Public Policy Institute of California found a cluster of candidates in close competition: Democrats Steyer and Porter, Republicans Hilton and Chad Bianco, and Swalwell. Other candidates were trailing. The polling was conducted before Swalwell withdrew.

Democrats have feared the party’s large number of candidates could lead to them getting shut out of the general election in November. That’s because California has a primary system in which only the top two vote-getters advance to the general election, regardless of party.

Leading Democrats are all claiming to have picked up support since Swalwell’s exit. Steyer nabbed one plum endorsement, when the influential California Teachers Association, which previously backed Swalwell, recommended him.

In his ads, Steyer promises to “abolish” U.S. Immigration and Customs Enforcement, which has been staging raids across California. In another, he laments the state’s punishing cost of housing, “Everybody needs an affordable place to live,” he says.

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Tory Lanez Sues California Prison System for $100 Million Over Stabbing

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Tory Lanez Sues California Prison System for 0 Million Over Stabbing


Rapper was stabbed 16 times by fellow inmate in May 2025 while 10-year sentence in Megan Thee Stallion shooting case

Tory Lanez has filed a $100 million lawsuit against the California Department of Corrections stemming from a May 2025 incident where the rapper was stabbed in prison.

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Lanez — born Daystar Peterson and currently serving a 10-year sentence after being found guilty in the Megan Thee Stallion shooting case — also sued the warden and guards at the California Correctional Institute in Tehachapi, where the rapper was stabbed 16 times in an “unprovoked life-threatening attack” by another inmate, the lawsuit states. 

Peterson was hospitalized following the May 2025 incident, suffering a collapsed lung among stab wounds to his back, torso, and head.

According to the Associated Press, the lawsuit criticized the Department of Corrections for housing Peterson with fellow inmate and alleged attacker Santino Casio, who was serving a life sentence for second-degree murder. “The choice to house Casio with Peterson was known or should have been a known danger,” the lawsuit said, adding that Tory Lanez’ “high-profile celebrity status” made him a target.

The lawsuit also said that prison guards were slow to respond to the shanking, and didn’t employ flash grenades or other measures to halt Casio’s attack.; Casio was not charged for stabbing Peterson, the Associated Press notes.

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Lanez, who following his hospitalization was transferred to San Luis Obispo County’s California Men’s Colony, also alleges in the lawsuit that he never received his possessions from the California Correctional Institute in Tehachapi, including songbooks filled with lyrics to his unreleased music.

Lanez is serving a 10-year prison sentence for shooting Megan Thee Stallion in the foot during a confrontation in the summer of 2020. He was eventually convicted on several firearms charges, including assault with a firearm, in December 2022. In November 2025, his appeal was denied by a three-judge panel, and the 10-year sentence was upheld.



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