Newsom moves to protect EV incentives from Trump — and Musk

By Wes Venteicher | 11/26/2024 06:08 AM EST

The announcement further positions California as a Democratic foil to Trump.

California Gov. Gavin Newsom speaks during a press conference in Los Angeles.

Gov. Gavin Newsom announced Monday that he will seek to expand California's electric vehicle incentives if President-elect Donald Trump eliminates the Inflation Reduction Act's EV tax credits. Eric Thayer/AP

SACRAMENTO, California — Gov. Gavin Newsom announced a plan on Monday to Trump-proof — and maybe even Tesla-proof — California’s nation-leading electric vehicle market.

Newsom’s office said in a news release that he would seek to revive state rebates worth up to $7,500 per car if President-elect Donald Trump carries out reported plans to eliminate Inflation Reduction Act EV credits worth the same amount.

But the California credits might not be available for vehicles from market-dominant automakers, according to an administration official — and that means Tesla. Elon Musk’s company continues to outsell its competitors, accounting for more than half of California EV sales for the year through October. Musk has been a near-constant presence by Trump’s side since he won the election after spending over $100 million to help retake the White House.

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Newsom’s plan, which will require legislative signoff, further positions California as a Democratic foil to a second Trump administration on progressive policy priorities on climate, immigration and reproductive rights.

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