Twitter takeover:Down 80% - Fidelity says X has plummeted in value since Elon Musk's takeover The state faces financial headwinds. California faces a $2 billion budget deficit next year, a non-partisan legislative estimate said last week. EVs account for 22% of California sales - or 293,000 through Sept. 30 - and it is unclear how much the state program would cost and if it would include the federal $4,000 tax credit for used EVs and impose the same limits on income and vehicle price. California provided up to $7,500 for the purchase or lease of a new plug-in hybrid, battery or fuel cell EV and could potentially be paid for by the Greenhouse Gas Reduction Fund which is funded by polluters under the state's cap-and-trade program. Musk and Newsom have clashed over state policies such as shutting Tesla's Fremont factory during the pandemic and California's approval of a bill on transgender kids. In 2021, Tesla moved its headquarters from California to Texas, and Musk said this year that his other companies such as SpaceX and social media platform X will follow suit. California has crossed the 2 million mark for sales of zero-emission vehicles, doubling total sales since 2022. Last month, a California official said he expects the Environmental Protection Agency to approve the state's plan to halt the sale of gasoline-only vehicles by 2035, a proposal that major automakers have met with skepticism. California's rules, which have been adopted by a dozen other states, require 80% of all new vehicles sold in the state be electric by 2035 and no more than 20% plug-in hybrid electric. Reporting by David Shepardson in Washington and Akash Sriram in Bengaluru; Editing by David Gregorio and Stephen Coates Featured Weekly Ad