California may exclude Tesla from EV rebate program

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California Gov. Gavin Newsom may exclude Tesla and other automakers from an electric vehicle (EV) rebate program if the incoming Trump administration scraps a federal tax credit for electric car purchases.

Newsom proposed creating a new version of the state’s Clean Vehicle Rebate Program, which was phased out in 2023 after funding more than 594,000 vehicles and saving more than 456 million gallons of fuel, the governor’s office said in a news release on Monday.

«Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay,» Newsom said in a statement. «We’re not turning back on a clean transportation future – we’re going to make it more affordable for people to drive vehicles that don’t pollute.»

The proposed rebates would be funded with money from the state's Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program, the governor's office said. Officials did not say how much the program would cost or save consumers.

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California Gov. Gavin Newsom on Monday proposed creating a new version of the state’s Clean Vehicle Rebate Program if the incoming Trump administration scraps a federal tax credit for electric car purchases. (Photo by Justin Sullivan/Getty Images, File / Getty Images)

They would also include changes to promote innovation and competition in the zero-emission vehicles market – changes that could prevent automakers like Tesla from qualifying for the rebates.

Tesla CEO Elon Musk, who relocated Tesla’s corporate