Nov 26, 2024 – A Heated Debate on EV Policies
Tesla CEO Elon Musk is firing back at California Governor Gavin Newsom after the state announced plans to potentially exclude Tesla from a new EV incentive program. The proposal comes as a countermeasure to replace the federal EV tax credit, which Musk has been lobbying to eliminate.
Governor Newsom’s plan introduces market-share limits that would disqualify Tesla, the leader in EV market share, from benefiting. The rationale? Boost opportunities for smaller EV manufacturers to thrive. Newsom elaborated, stating the goal is to “create conditions for more carmakers to take root.”
Musk, however, was quick to label the proposal “insane,” citing its potential to harm California jobs, especially in Tesla’s Fremont factory and its engineering hubs. Tesla, which once heavily relied on federal tax credits, now believes eliminating them could help it maintain a competitive edge over less-efficient automakers that may struggle without the subsidies.
While Musk supports ending federal incentives, critics argue that such a move would slow EV adoption in the U.S., which already trails global leaders. For California, replacing the federal program with its own was a logical step to sustain the growing EV market—until Tesla’s exclusion entered the discussion.
Electrek’s Take
The debate highlights a striking contradiction: Tesla, which benefited from tax credits to rise to dominance, is now advocating their removal, potentially pulling the ladder up for competitors. While Newsom’s move seems aimed at countering Tesla’s lobbying efforts, it raises questions about fairness and long-term industry impact.
Musk’s stance has drawn mixed reactions. Supporters believe Tesla’s cost-efficient structure can thrive without subsidies, while critics see hypocrisy in lobbying to end incentives while decrying exclusion from California’s program.
As the EV industry faces shifting policies, the clash between Musk and Newsom underscores a larger battle over who should lead the charge in America’s electric revolution.
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