California leaves its biggest EV maker out of EV subsidies

Tesla, the largest electric vehicle (EV) maker in California will be excluded from the new EV subsidies program said California Governor Gavin Newsom.

CA governor announced a new state clean vehicle rebate program to support new EV purchases if President-elect Donald Trump ends the $7,500 credit. The previous program was phased out in 2023 and funded more than 594,000 vehicles on the road.

Bloomberg reported that Newsom’s office has confirmed the new program will leave Tesla out of the subsidies.

“It’s about creating the market conditions for more of these car makers to take root,” said Newsom’s office in a statement while not confirming other EV makes from this exclusion.

Tesla Model 3 (Image source – Tesla)

This move comes as Trump mandates the removal of the clean vehicle subsidies, which were introduced by the Biden administration under the Inflation Reduction Act (IRA).

Meanwhile, Tesla remains the largest EV seller in the State accounting for more than 50% market share. Tesla made more than half of the EVs in the state in the first three quarters.

Moreover, the Tesla Fremont factory is the largest manufacturing site in California and the only EV company in the state. It has more than 20,000 employees and produces most EVs in the state annually.

(source)