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possibility of instituting a new electric vehicle incentive program in the event that the federal tax credit for EVs is repealed by President-elect Trump.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.


Valero Port Arthur Refinery Explosion Prompts $1M Lawsuit Over Worker Safety Negligence
Innate Pharma Reports 55% Revenue Drop and €49.2M Net Loss for 2025
SK Hynix Eyes Up to $14 Billion U.S. IPO to Fund AI Chip Expansion
Nanya Technology Shares Surge 10% After $2.5 Billion Private Placement from Sandisk and Cisco
Golden Dome Missile Defense: Anduril and Palantir Join Forces on Trump's $185B Space Shield
NVIDIA's Feynman AI Chip May Face Redesign Amid TSMC Capacity Crunch
OpenAI Pulls the Plug on Sora, Ending $1 Billion Disney Partnership
SpaceX IPO Filing Expected This Week as Valuation Could Surpass $75 Billion
9 Tips for Avoiding Tax Season Cyber Scams
Finnair Orders 18 Embraer E195-E2 Jets in Landmark Fleet Overhaul
SLMG Beverages Eyes Price Hikes Amid Rising Packaging Costs and India's Booming Soft Drink Market
Palantir's Maven AI Earns Pentagon "Program of Record" Status, Reshaping Military AI Strategy
Citi Names Eric Farina and Rob Cascarino to Lead Global Infrastructure Financing Group
Nintendo Switch 2 Production Cut as Holiday Sales Miss Targets
AWS Bahrain Region Disrupted by Drone Activity Amid Middle East Conflict
Reflection AI Eyes $25 Billion Valuation in Massive $2.5 Billion Funding Round
Apple Defies China's Smartphone Slump with Strong Early 2026 Sales 



