California may leave Tesla out of subsidy plan for electric cars

California may leave Elon Musk’s electric car company Tesla out of the rebates it is expected to offer for electric vehicles if President-elect Donald Trump chooses to remove the existing $7,500 tax credit for these cars, writes the Financial Times.

Elon Musk was quick to respond to this on his social media platform X.

“Even if Tesla is the only company that produces its electric cars in California, this is madness!”, he writes.

Yesterday, Governor Gavin Newsom stated that these rebates would be funded by companies and facilities that pay for credits to emit greenhouse gases.

“We will intervene if the Trump administration eliminates the federal tax credit and doubles down on our commitment to clean air and green jobs in California,” he said yesterday.

Trump has also stated that on his first day as president, he will repeal California’s rules that ban the sale of gasoline-powered cars and trucks starting in 2035.