California's EV rebate proposal threatens Tesla's market position
- Governor Gavin Newsom's office is revising the Clean Vehicle Rebate program.
- The proposal considers adding market-share limitations to the existing program.
- Elon Musk opposes the proposal, calling it 'insane' and suggesting significant consequences for Tesla.
In California, a significant development concerning electric vehicle incentives is taking shape. The state is contemplating modifications to its Clean Vehicle Rebate program, which is currently positioned to replace the federal EV tax credit. Governor Gavin Newsom's office has proposed introducing market-share limitations for car manufacturers, which raises questions about how this will affect long-standing players in the electric vehicle sector, particularly Tesla. The implications of such a decision could reshape the competitive landscape of California's EV market. Elon Musk, the CEO of Tesla, has criticized this proposal, branding it as 'insane' and highlighting the tensions between state regulations and market operations that this proposal may incite.