Elon Musk: CA Gov. Newsom’s Plan to Exclude Tesla From Rebate Program is “Insane”
A governor targeting one of the most popular entrepreneurs in the country and hurting his citizens to do so is unappealing to Americans in today’s environment. It will be even less appealing in 2028.
California’s war on businesses continues, as state leadership still has not learned any lessons from Tesla headquarters, X headquarters, and Chevron’s departure from the state for Texas.
A story in 3 panels. #Capitalism #CaliforniaVSTexas pic.twitter.com/xCrYCF2eto
— Leslie Eastman ☥ (@Mutnodjmet) October 8, 2021
Presently, California is taking significant steps to reinstate its electric vehicle (EV) rebate program. This initiative comes in response to the potential loss of all the federal tax incentives under the incoming Trump administration, which should help resolve the Biden-created market distortions.
Newsom clearly plans to “Trump-proof” California.
California Gov. Gavin News intends to exclude Tesla from the rebate program in a move that apparently targets Musk as “Enemy Number 2” in the progressives’ war on wrong-thinking Americans.
Tesla may be excluded from Gov. Gavin Newsom’s proposal to enact new electric vehicle tax credits if President-elect Donald Trump kills a federal rebate program for EV purchases, according to the governor’s office.
Newsom announced plans this week to reintroduce an electric vehicle rebate to replace the $7,500 federal rebate President-Elect Donald Trump has threatened to eliminate. However, under Newsom’s plan, the California rebate would exclude makers like Tesla, California’s largest electric vehicle manufacturer helmed by Newsom’s political antagonist Elon Musk.
The governor’s proposal could include a market share cap, and Tesla accounted for more than half of new EVs sold in California in the first three quarters of 2024, according to the California New Car Dealers Assn, the Los Angeles Times reported.
I suspect that the move is Newsom’s play to remain as relevant as he can, in order to sustain any presidential ambitions that he has for 2028. This is a rather hilarious move, as Newsom is happy to take credit for all of Musk’s many successes.
Gavin Newsom is claiming credit for Elon Musk’s success. This has to be one of the dumbest statements ever made in history. pic.twitter.com/IuErhXxNtw
— DogeDesigner (@cb_doge) October 16, 2024
“It’s one of the reasons guys like Elon Musk and others have become so damn successful,’ Newsom said in October. ‘It’s because we’ve set price signals, we’ve created markets, we’ve created opportunities for investments. We’re the number one manufacturer for a reason. We continue to be the envy of the world.”
Musk had a pithy response to the move: “This is insane“.
Musk, whose company is the only one that actually manufactures EVs in the Golden State, clearly felt singled out and slammed Newsom’s proposal. ‘Even though Tesla is the only company who manufactures their EVs in California! This is insane,’ he wrote on X. A Musk fan posted a video to the social media site showing Newsom actually gloating about being responsible for Musk and Tesla’s riches.
Even though Tesla is the only company who manufactures their EVs in California!
This is insane. https://t.co/EhVeG2TYqT
— Elon Musk (@elonmusk) November 25, 2024
One analyst likened the developments to a “Game of Thrones” episode.
Dan Ives, senior analyst at Wedbush, said Newsom’s proposal could set off a “Game of Thrones battle” between the Democratic governor and Musk, the world’s richest person.
“This is clearly a political move of Newsom and California towards Musk which now has a front seat to the Trump White House and will be a key player in ultimately getting these federal tax credits wiped away among a myriad of other things on the federal front,” Ives said.
The Wedbush analyst said Newsom’s proposal runs the risk of Musk deciding to move more jobs from Tesla’s Fremont, Calif., plant to its Austin, Texas, Gigafactory.
Now, I would like all the subsidies to end…even for Tesla. However, targeting an individual company and its owner is not a good look for a person who aspires to be the leader for all Americans.
Furthermore, it runs the risk of Tesla manufacturing to a friendlier state. Tesla is one of the largest employers in Fremont, with a staff of over 20,000. Those people fund the businesses, the schools, and the state of California.
The loss of tax dollars from all the other firms leaving the state means California is currently facing a significant budget deficit. The Legislative Analyst’s Office projects a $68 billion deficit for the 2024-25 fiscal year.
A governor targeting one of the most popular entrepreneurs in the country and hurting his citizens to do so is unappealing to Americans in today’s environment. It will be even less appealing in 2028.
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Comments
close everything in CA and move
to TX ….
You beat me by nine minutes, I was about to say close the plant in Fremont.
Obviously this is a farce that can’t survive court. That could be Newsom’s move. Pull an “I tried” maneuver without actually having to pay for it.
“I tried to be a good Communist, but those Trump judges…”
When you are King/Prine Charming…er… governor of The Nation State er.. state of California… you can be anything you want… North Korea is the Hermit Kingdom…. Newsolini believes he can extend The Magic Kingdom beyond Anaheim.
What was the old yarn about arguing with a newspaper man? Don’t pick a fight with someone who buys ink by the barrel?
Newsom just picked a fight with a man whose personal wealth is higher than most countries GDP.
Rather stupid move against a man who could build a Tesla plant 10x the size of the current plant in Texas with the spare change in his pocket.
Prediction: Newsom will lose this fight and badly.
Anybody who thinks Newsom is sane is insane.
I have no love for Newsom. However, it seems that Tesla was the beneficiary of corporate welfare and Newsom wants to withdraw it, because Tesla’s success eliminates the need for further taxpayer funding.
I agree that it seems like a dud politically, but apparently CA residents suffer from bat guano fume poisoning.
Newsom will continue to try and manipulate, but he will be passed by in the end because he’s just in it for himself, like Harris, and it will not outside California, where there is only one party in control.
Does he color his hair gray? Would not be surprised. That’s how fake and manipulative this man, whose character is formed by privilege, is.
Democrats would be fools to nominate Newsom in 2028, so his odds are even.
CA currently runs a big deficit. As people and businesses move to other states, the revenue shortfall will only get worse. So this is no time for a rebate program. I don’t expect CA will change policies. What happens when CA can’t pay its bills? Obviously they will go running to the feds as NYC did in 1975 when it could no longer sell its bonds. Then we got the famous NY Daily News headline: “Ford to New York: Drop Dead.” He actually never said that. Ford said he would veto a bailout. Ha, he later caved: NYC got a bailout. Republicans pretty much always cave. Will Trump cave, if CA comes begging? I suspect yes. CA, like Long Term Capital Management in 1998, and the big banks in 2008 are simply too big to fail. Ditto CA. Republicans are gutless wonders, Trump too– watch.
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