It looks like the political fallout from Elon Musk’s open endorsement of President-elect Donald Trump isn’t over yet - not that the billionaire much cares.
In the latest targeting of Musk and his companies, the state of California is preparing to exclude Tesla from its list of Electric Vehicle manufacturers that qualify for state government-subsidized tax credits, should Trump put the kibosh on the current federal EV tax credit program.
California Democrat Governor Gavin Newsom said on Monday that should Trump get rid of the current federal tax credit for EVs, his administration would propose the creation of a state-based version, similar to a previous California EV tax credit program that spent nearly $1.5 billion to subsidize electric vehicle purchases at up to $7,500 per car. That program ended in 2023.
Should the program be rebooted, the new version would likely not include Tesla, Newsom said, though he didn’t specify exactly why or how the EV company would be pushed out. But according to his office’s statement, any proposal to replace the federal tax credit with a state one would “include changes to promote innovation and competition in the ZEV market," suggesting larger EV manufacturers like Tesla wouldn’t make the cut. Which, even setting aside the insanity of taxpayer-subsidized "tax credits" for government-approved behavior, especially by a state government already drowning in debt and buckling under copious expensive "social" programs, smacks of political retribution.
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California typically accounts for just under 12% of new car sales in the U.S., with 22% of its vehicles being electric. Unsurprisingly, Tesla stock closed down 4% Monday following the announcement.
Musk took a jab at the proposal in a post on X, noting that Tesla is the only EV manufacturer that currently makes their cars in California.
Even though Tesla is the only company who manufactures their EVs in California!
— Elon Musk (@elonmusk) November 25, 2024
This is insane. https://t.co/EhVeG2TYqT
True - but it's also the only company whose CEO personally campaigned for Trump, making him Public Enemy No. 2 in the eyes of rabid leftists, regardless of how many environmentally-friendly cars he produces in line with their "green" agenda.
Follow MRCTV on X!
Seriously? The State Department used taxpayer funds to provide post-election therapy sessions for employees.
— MRCTV (@mrctv) November 26, 2024
https://t.co/AhccP9EC3S