A governor targeting one of the most popular entrepreneurs in the country and hurting his citizens to do so is unappealing to Americans in today’s environment. It will be even less appealing in 2028.
Posted by Leslie Eastman
California’s war on businesses continues, as state leadership still has not learned any lessons from Tesla headquarters, X headquarters, and Chevron’s departure from the state for Texas.
A story in 3 panels. #Capitalism #CaliforniaVSTexas pic.twitter.com/xCrYCF2eto
— Leslie Eastman ☥ (@Mutnodjmet) October 8, 2021
Presently, California is taking significant steps to reinstate its electric vehicle (EV) rebate program. This initiative comes in response to the potential loss of all the federal tax incentives under the incoming Trump administration, which should help resolve the Biden-created market distortions.
Newsom clearly plans to “Trump-proof” California.
California Gov. Gavin News intends to exclude Tesla from the rebate program in a move that apparently targets Musk as “Enemy Number 2” in the progressives’ war on wrong-thinking Americans.
Tesla may be excluded from Gov. Gavin Newsom’s proposal to enact new electric vehicle tax credits if President-elect Donald Trump kills a federal rebate program for EV purchases, according to the governor’s office.
Newsom announced plans this week to reintroduce an electric vehicle rebate to replace the $7,500 federal rebate President-Elect Donald Trump has threatened to eliminate. However, under Newsom’s plan, the California rebate would exclude makers like Tesla, California’s largest electric vehicle manufacturer helmed by Newsom’s political antagonist Elon Musk.
The governor’s proposal could include a market share cap, and Tesla accounted for more than half of new EVs sold in California in the first three quarters of 2024, according to the California New Car Dealers Assn, the Los Angeles Times reported.
I suspect that the move is Newsom’s play to remain as relevant as he can, in order to sustain any presidential ambitions that he has for 2028. This is a rather hilarious move, as Newsom is happy to take credit for all of Musk’s many successes.
Gavin Newsom is claiming credit for Elon Musk’s success. This has to be one of the dumbest statements ever made in history. pic.twitter.com/IuErhXxNtw
— DogeDesigner (@cb_doge) October 16, 2024
“It’s one of the reasons guys like Elon Musk and others have become so damn successful,’ Newsom said in October. ‘It’s because we’ve set price signals, we’ve created markets, we’ve created opportunities for investments. We’re the number one manufacturer for a reason. We continue to be the envy of the world.”
Musk had a pithy response to the move: “This is insane“.
Musk, whose company is the only one that actually manufactures EVs in the Golden State, clearly felt singled out and slammed Newsom’s proposal. ‘Even though Tesla is the only company who manufactures their EVs in California! This is insane,’ he wrote on X. A Musk fan posted a video to the social media site showing Newsom actually gloating about being responsible for Musk and Tesla’s riches.
Even though Tesla is the only company who manufactures their EVs in California!
This is insane. https://t.co/EhVeG2TYqT
— Elon Musk (@elonmusk) November 25, 2024
One analyst likened the developments to a “Game of Thrones” episode.
Dan Ives, senior analyst at Wedbush, said Newsom’s proposal could set off a “Game of Thrones battle” between the Democratic governor and Musk, the world’s richest person.
“This is clearly a political move of Newsom and California towards Musk which now has a front seat to the Trump White House and will be a key player in ultimately getting these federal tax credits wiped away among a myriad of other things on the federal front,” Ives said.
The Wedbush analyst said Newsom’s proposal runs the risk of Musk deciding to move more jobs from Tesla’s Fremont, Calif., plant to its Austin, Texas, Gigafactory.
Now, I would like all the subsidies to end…even for Tesla. However, targeting an individual company and its owner is not a good look for a person who aspires to be the leader for all Americans.
Furthermore, it runs the risk of Tesla manufacturing to a friendlier state. Tesla is one of the largest employers in Fremont, with a staff of over 20,000. Those people fund the businesses, the schools, and the state of California.
The loss of tax dollars from all the other firms leaving the state means California is currently facing a significant budget deficit. The Legislative Analyst’s Office projects a $68 billion deficit for the 2024-25 fiscal year.
A governor targeting one of the most popular entrepreneurs in the country and hurting his citizens to do so is unappealing to Americans in today’s environment. It will be even less appealing in 2028.
The Dems will break Musk. At some point, Trump will fade and the sharks will devour him.
Or they will overreach, and fail. Musk has shown an ability to fight back, and the left are often scavengers, not alpha predators.
Their strength was the legacy media, which has a failing business model.
Their strength was also Twitter and the unfettered dispersal of the Democrats Approved Disinformation through it’s liberal echo chambers. Now that Musk has re-branded it as “X” the
free speechDisinformation loud speaker has been shut off.The apparatchiks were “jawboning” social media in general, as shown by The Twitter Files and Missouri v Biden, AKA Missouri v Murthy. There was a great deal of “nice business you have here, pity if something happens to it”. Bureaucrats and the Democratic Party are hard to distinguish.
CNN recently reported that since Elon’s takeover, X has become more politically balanced. From 65% D / 31% R in 2022 to 48/47 today.
I’ve been finding the MSM well balanced lately. I wonder whether they’ve rethought throwing away half of all potential US viewers?
I suspect they are only appearing to be balanced to regain an audience and trust.
The wolves’ sheep’s clothing slipped and they’re trying desperately to get it back in place.
If people don’t trust them, what good are they to “The Cause”?
Some of them, like LA Times, appear to have grown a bit of sense. But I suspect most of them are as Gunga says.
Insane in dysfunctional California is the new normal!
Musk is the biggest shark in this ocean.
And he makes awesome cars… right Mark?
That lose almost Half their value after the first few years… And have little resale (second hand market) in 8 years.
No-one wants a used EV!
Still awesome the aye?
Volcanic eruptions are also awesome, but I wouldn’t want one in my driveway
You know the EV’s catch fire thing is hype right? I mean they do, but way less than ICE cars… way less. And newer EV’s are even less likely, so buy a new one I say.
so buy a new one I say
And hope you don’t get in a wreck that requires extrication.
And are way harder to extinguish once they do immolate
That’s true but for the 99.99% of EV owners who will never experience an EV fire…. not a problem.
The Dems are weak-minded and petty children.
Always have been.. always will be.
How we love to see Democrat tears. !!
Democrats use the entire federal government for law-fare, aka making rules and regulations to benefit their friends and families, called grifting and grafting, and screw all others, because they are deplorable, despicable, garbage, Putin lovers, Trump lovers, etc.
“The Dems are weak-minded and petty children.”
Says the man who uses putdowns a three year old would be ashamed of.
Like they broke Trump?
At some point, the universe will end. So what?
Gavin Newsom is more beholden to unions than greens, and it shows.
Those dudes who go on strike so the factories don’t close?
VW workers across Germany go on strike as it plans to close factories | Watch
How’s that working out for the watermelons?
There is no cure for California government.
But, remember that the Federal subsidy for EVs had a declining value as a company sold more cars. Tesla long passed the amount such that their subsidy was $0.00. The state is setting up a similar program to benefit new manufacturers.
There is no cure for California government.
Well they sorta get it eventually when they run out of other people’s money-
French government on the verge of collapse
Fast running out of enthusiasm for changing the weather it seems.
What you refer to at the Federal level is long ago, and not currently accurate:
the so-called “Inflation Reduction Act” of 2022 extended and expanded purchase tax credits for all new and used EVs, included all Tesla vehicles. Unless repealed, the Act is in effect up to CY2032. The Act eliminated the per-manufacturer limit on EV tax credits, effective as of January 1, 2023.
“to benefit new manufacturers”
Aha, that makes more sense, thanks.
The Tesla model “Plaid” sells for $150k and after one year the used price is $75k. A person paid $100k for a Cyber truck and after 6 months the basic truck was reduced to $79k which also qualified it for a $7500 rebate. People are going for leases rather than buying these overpriced vehicles.
“Tesla accounted for more than half of new EVs sold in California in the first three quarters of 2024,”
Were these sales without the Federal credit? If so, what is the fuss about?
Does the average wage-earner in CA want to pay taxes so the better half of the citizens can indulge in the luxurious pleasure of an auto not affordable to them?
Time to move, I think.
Maybe CA will be annexed by Mexico!
Canada more likely, and then become a bridge too far.
Your government at work. The right thing to do is get the government out of the energy business, the transportation business and hold government responsible for the chaos and damage they are causing. They are wretched.
I was raised to believe (and this is supported by our Founding Fathers) that the government’s number one priority is to protect the citizens FROM the governemtn.
These days the Government number one priority is to divert hoi polloi attention away from Deep State so that forces that are really in control are unaccountable.
Sad, but true. Add in they get to fill their pockets with cash doing so.
Yes, this is how the system works. The next time there is a big market crash (likely due to green tech bubble) they will just uncontrollably print another 20-30 trillions to recapitalize their own banks, while passing another 3 or so trillion Stimulus Package through Congress. This way they will write off all of their losses due to Net Zero flop, while passing them on public as inflation.
And of course they will award yet another Nobel economic prize to themselves for this brilliant solution.
Realize that the deep state spends lots of time and money training their employees on how to put checkmarks on checklists that nobody ever looks at and attending employee behavioral modification seminars that no one wants to attend.
How Americans ever survived the first 150 years of non deep stateism is beyond me.
He could run down the street naked screaming Look at Me! Look at Me! and it would have about the same effect. He’s trying to stay in the national headlines by doing the exact things that lost the Dems the last election. Perhaps he should cackle also?
He won’t be their candidate in 2028, but boy is he going to fight for it. Consider it free entertainment. Unless you live in California of course, then you should just be ashamed.
I live in Kali. I have since 1962. And for reasons beyond my control, I’ll probably be here till I die. I’m not ashamed – why should I be? Take a look at a political map of California before generalizing. The vast majority of the state area, and many millions of its voters, are conservative and loathe Gov Newsome.
A lot of Cal. turned red in the last election. Blue is mostly coastal consisting primarily of Hollywood elitists and the uber rich with mansions on the sea shore (what about rising oceans).
I live in Canada and could make similar arguments about the lay of the land here. But the fact is Trudeau somehow got to be Prime Minister on a campaign of “feelings”.
Trudeau went to Mar-a-lago on a surprise trip to see Trump and Trump spoke to him like he was a child. That Canada’s standing in the world has dropped so low that our leader panicked, made an unnounced trip, and got bullied on every talking point. Yup, I’m ashamed.
Newsome’s mistake here is not that Tesla is excluded from rebates. It is the fact that all of the other manufacturer’s BEVs are offered any rebates.
This is not just a mistake within a plan that is not a mistake, this part of the plan that is a mistake.
Musk should notify his California employees that they are all being made redundant due to California’s proposed exclusion from EV mandates.
And then move to a friendlier state.
20,000 unemployed Californians is gonna hurt.
Musk is not happy about being in Fremont and he hasn’t been shy about saying that for a number of years. Of course, if he closes it, it will just be a continuation of closures since GM, Toyota and NUMI have all previously closed and left the same factory. There’s gotta be a reason for that, I wonder what it is?
The state government is hardly business friendly. Fremont is the last car plant in the Democratic Peoples Republic of California.
“all previously closed and left the same factory. There’s gotta be a reason”
By the same logic, there’s gotta be a reason they came before leaving.
If they make products that consumers do not want, unless they are subsidized by the Government, they are indeed redundant, and I would welcome such turn of events that would fully expose this fact.
The messianic Green project of deindustrialisation and destruction of capitalism/consumerism is operating full on in California. Home of the Hollywood virtue signallers, who needs reality when the silver screen conveys whatever imaginary world you desire.
The Newsom socialist habit of claiming full responsibility for anything that is considered positive while blaming everyone else (mainly Trump) for all the negatives. That is rule #1.
Runaway forest fires that is not Newsom’s fault. Blackouts and having to import electricity from neighbouring states that is not Newsom’s fault. Rough sleepers and destitution on the streets of LA and most other major Californian cities is not Newsome’s fault. The highest energy prices in the entire USA that’s not Newsom’s fault. The highest drug related anti social behaviour in the USA that is not Newsom’s fault. There are no illegal migrants in California just unregulated citizens, there are no criminals shop lifting in California, that ‘is’ definitely Newsom’s fault….
On the other hand the ending of the drought conditions due to good winter snow falls and actual rainfall filling the dams that is certainly Newsom’s fault….and that’s before he made all those electric cars badged TESLA.
Does anyone know what constitutes a God complex?
More of a “petty tyrant with delusions of godhood.”
— to quote a Klingon in The Trouble with Tribbles
Obviously just a PETTY teen-minded tantrum from Newsome. !
Poor little child is taking the Democrat loss really hard !!
Pretty much it, PPS – Petty Proclamation Syndrome.
Nobody questions if its a government task to use tax payer money for citizens to buy a car. I don’t need a car, so can I have some money for a new tv, dishwasher or whatever?
But can Gruesome get away with it? Or is it just an idle threat?
As long as the lemmings (i.e. voters) continue the trek to drown in the sea, he can get away with anything.
A world gone mad.
It is sad, but it is often so true: a pleasant face can hide an absence of intelligence.
Applies in Hollywood, applies in politics, applies in normal life.
Litte downside for being pro-Trump huh Elon?
You think he cares?
Lawfare, Russia-Gate, repeated attempts to impeach, etc. against Trump. All failed.
Now Pelosi’s nephew is targeting a guy who supported Trump (to a point) rather than Brandon and his pet Cackler.
What’s the downside? An economy where people who want to buy an EV or a Tesla might actually be able to afford one, with or without Government subsidy?
(I won’t be one of the buyers but to each his own.)
If voters don’t remind this fellow whom he’s supposed to represent, then fine. Glad I live elsewhere.
As someone else said on here he’s a Gabbing Nuisance. I am stealing that nomenclature.
Legally it won’t happen.
Almost all subsidies are insane, especially those targeted to wealthy individuals. Now when you exclude Tesla, it’s very obvious that the point of the subsidy is not to save the earth.
There is a wee problem with EVs for carmakers who aren’t as advanced as Tesla or the Chinese like BYD-
The Hidden Cost of EVs: Battery Failures Risk Closing Automakers
Interestingly Chinese MG offer 10yr/250,000km warranties on their EVs in Oz now as they discount cars like the MG4-
Meet the new cheapest electric car in Australia: Huge $10,000 price cut for 2024 MG4 to massively undercut the BYD Dolphin, GWM Ora plus incoming Hyundai Inster and Kia EV3 – Car News | CarsGuide
They’re not mucking around smashing Western legacy automakers in our market with no local car industry to protect-
MG outsells Tesla for first time as Australian EV sales stagnate, despite price war
PS: Times those prices by 0.65 for USD pricing