California’s proposed EV tax credit plan has sparked outrage, with Tesla excluded despite being the state’s only EV manufacturer. Congressman Ro Khanna and Elon Musk have condemned the decision, calling it harmful to local jobs and manufacturing.
Tesla Faces Exclusion from California’s EV Incentive Proposal
In light of the recent reports that indicate California Governor Gavin Newsom is considering the possibility of instituting a new electric vehicle incentive program in the event that the federal tax credit for EVs is repealed by President-elect Trump. The governor of California's proposal does not include Tesla, which is the sole stipulation.
So, the proposed scheme might be the only one to not incentivize Tesla vehicles, even though the company employs thousands of Californians and is the only automaker with a California assembly plant.
Teslarati shares that, considering the success of Tesla's Model 3 and Model Y in California, this would set up a very peculiar situation.
Musk Slams California’s Proposal Over Tesla Exclusion
Elon Musk took issue with the governor of California's plan in an X post. "Even though Tesla is the only company who manufactures their EVs in California! This is insane," Musk wrote. In a subsequent post, Musk further emphasized that "Tesla is the only one making cars in California, so this move hurts jobs in California."
It would be incredibly stupid to purposefully exclude Tesla out of any possible California electric vehicle incentive, as pointed out by Democratic Congressman Ro Khanna on X, echoing Musk's thoughts.
Additionally, he brought up the fact that the Democratic Party needs to reflect on its previous mistakes; after all, the exclusion of Tesla from the Biden administration's electric vehicle conference in 2021 was a major blunder.
Congressman Highlights Tesla’s Role in California Jobs
“Tesla makes over 550,000 vehicles in Fremont in my district & employs over 20,000. Let’s not play politics with keeping manufacturing in California. It would be foolish to exclude Tesla. Have we learned nothing from snubbing Elon Musk at the Biden EV summit?” the lawmaker asked in a post.
A representative from the California governor's office said, "We’ll let today’s announcement speak for itself," in response to a question from KCRA 3 on Khanna's worries. That the proposed California EV rebate will "include changes to promote innovation and competition in the ZEV market" is what the release suggests.


Meta CEO Zuckerberg Says AI Agent Development Has Slowed Despite Massive AI Investment
BHP Workers Approve New Labour Agreement at WA Iron Ore Operations
EU Chip Industry Faces Growing Risks From China Export Controls and U.S. Technology Dependence: Report
Suncorp Cuts 2026 Premium Growth Forecast as Australia, New Zealand Markets Weaken
Microsoft Reportedly Plans New Job Cuts Across Sales, Consulting, and Xbox
Kioxia Bets on AI Memory Boom With Next-Gen NAND Production in Japan
Apple Challenges India Antitrust Probe, Says CCI Copied Rivals’ Claims in App Store Case
Super Micro Employees Detained in Taiwan AI Server Export Investigation
ShareChat Eyes 2027 IPO After Reaching Operational Profitability, Report Says
Kawasaki Heavy Shares Slide on Report of ¥200 Billion Capital Raise Plan
Apple Eyes Chinese Memory Chips as AI Shortage Pressures iPhone Supply Chain
Trump Administration to Launch Voluntary AI Standards for Frontier Models
Texas Man Charged After Fatal Tesla Full Self-Driving Crash in Katy
Baidu Shares Rally as Kunlunxin Eyes $50 Billion Hong Kong IPO
Lockheed Martin Emerges as Frontrunner to Acquire Ultra Maritime in $3.5 Billion Defense Deal
Trump Reports $1.4 Billion in Crypto Income as Digital Assets Become Top Wealth Source
Sodexo Raises 2026 Revenue Outlook After Strong Q3 Sales Beat 



