Elon Musk erupts over California plan that could cut Tesla from EV tax credit

Trump’s new government efficiency maven said just this summer that all subsidies for electric vehicles should be cut

Elon Musk blew up in a post on X after California Gov. Gavin Newsom floated the possibility of providing tax credits for buyers of electric vehicles that might not include Tesla.

“This is insane!” complained Musk, who has been chosen by President-elect Donald Trump to head a new federal efficiency department to cut waste from the government.

Newsom’s office announced Monday that it plans to relaunch California’s subsidy of up to $7,500 in tax credits for buyers of electric vehicles if Trump cuts the same EV federal tax credit, as he’s expected to do.

California’s potential plan would likely not include Musk’s cars because the program would be aimed at helping carmakers with smaller market shares, both Bloomberg and The New York Timesreported. Tesla accounted for 56 percent of new EV sales in California during this year’s third quarter.

Newsom’s office has not yet confirmed that Tesla would be carved out from the program.

California Gov. Gavin Newsom’s possible plan to cut Tesla buyers out of new EV tax credits is driving Elon Musk nuts. (AP)

Musk complained in his post that Tesla is the only EV company that makes its cars in California. Tesla’s biggest factory in the country is still its operation in Fremont, California, even though Musk moved Tesla’s headquarters to Texas in 2021.

California Democratic Rep. Ro Khanna, whose district includes Musk’s Fremont factory, noted on X: “Tesla makes over 550,000 vehicles in Fremont in my district & employs over 20,000. Let’s not play politics with keeping manufacturing in California. It would be foolish to exclude Tesla.”

Musk in July supported elminating tax credits for electic vehicle buyers, many spectulated because it would hurt competitors at a time Tesla had already captured the leading EV market share.

“Take away the subsidies. It will only help Tesla,” he wrote.