How & Why Would California Block Tesla From New EV Subsidy Program?

Join daily news updates from CleanTechnica on electronic mail. Or follow us on Google News!

I used to be simply studying Tina Casey’s article on EV sales and noticed the part on the finish noting that California Governor Gavin Newsom plans to revive the state’s EV subsidies if Trump and Republicans kill the $7,500 US EV tax credit score. The fascinating, or one may say loopy, factor in regards to the information is that the revived California EV rebate might exclude Tesla automobiles. How and why would that occur?

Properly, let’s begin with the obvious political reply. Elon Musk can be an enormous a part of the US EV tax credit score getting minimize, an enormous a part of it. If California has to come back in and hold the EV incentives going for its residents, it’s not that shocking that Governor Gavin Newsom would say, “well, s*rew you,” and discover a approach to exclude Teslas. Moreover, Musk has repeatedly trashed California, trashed Democrats, and moved Tesla HQ and his personal residence to Texas, avoiding large taxes for the state after constructing Tesla’s and Elon’s empire largely on the backs of Californians and significantly Californian taxpayers. Once more, after getting mainly stabbed within the again, the state might really feel prefer it’s achieved subsidizing Tesla.

Now, some counterpoints. Tesla’s largest manufacturing facility exterior of China continues to be its Fremont manufacturing facility. Supporting Tesla helps jobs in Fremont, California, in addition to surrounding areas. Even when Tesla has moved its HQ to Texas, there’s no extra Californian automobile firm than Tesla. Additionally, about half of electrical automobile gross sales are nonetheless Tesla gross sales. There aren’t any electrical automobiles consumers wish to purchase greater than Teslas. So, discovering a approach to exclude Tesla from the incentives can also be punishing individuals who would fairly purchase a Tesla than a non-Tesla EV. That’s not very good, and absolutely not going to be well-liked with a variety of customers.

However let’s now get much less private and take a look at another prospects, and this could additionally get to authentic the explanation why the state may exclude Teslas. To begin with, if California’s chief intention is to encourage automakers to supply and promote extra EVs and fewer gasoline-power vehicles, it may construct laws round that, across the share of automakers’ gross sales which might be electrical and ensuring that share grows. Naturally, Tesla’s already at 100% electrical automobiles, so there’s no room for enchancment there. (The counterargument is that so long as Teslas are made cheaper by way of EV subsidies, they’ll outcompete extra gas-powered automobiles and scale back their gross sales — the entire cause it is senseless for Elon Musk to help killing the EV tax credit score.)

Or maybe the state desires to help firms which have sturdy ESG or DEI insurance policies and Tesla gained’t qualify. (This can be a way-outside-the-box concept that I wouldn’t put cash on, but it surely’s a chance.)

Possibly the state wish to solely subsidize vehicles beneath a sure value level and Tesla vehicles gained’t qualify. But when that’s the case, most electrical vehicles gained’t qualify and just a few would profit.

Possibly the state may even set the coverage such that the incentives are solely eligible for automobile firms that didn’t push to take away the federal EV tax credit score. However I doubt it.

I’m probably not positive what different prospects are on the market. And provided that none of these arguments above are significantly compelling, I’d presume that Tesla automobiles can be included. Maybe there’s even one thing misreported on this and there’s little interest in discovering a approach to exclude Teslas.

Although, if it finally ends up Tesla automobiles are excluded (and this additionally goes on the idea that Republicans take away the federal EV tax credit score), I’d should guess that there’d be one thing within the coverage about growing the share of automakers’ gross sales which might be electrical automobile gross sales, and difficult luck to these firms already at 100%. We’ll see.