Updated: 6:29 PM PST Nov 26, 2024 CALIFORNIA’S ZERO EMISSIONS VEHICLE TAX CREDIT? THAT’S A QUESTION MANY ARE NOW ASKING AFTER GOVERNOR NEWSOM’S ANNOUNCEMENT YESTERDAY. THE GOVERNOR SAID THAT HE’LL TRY TO RESURRECT THE STATE’S REBATE FOR PEOPLE WHO BUY ZERO EMISSION VEHICLES. IF THE TRUMP ADMINISTRATION GETS RID OF IT. KCRA THREE CAPITOL CORRESPONDENT ASHLEY ZAVALA IS GETTING THE FACTS ON HOW THIS WOULD AFFECT TESLA AND OTHER CAR MAKERS. RIGHT. WOULD TESLA BE COMPLETELY EXCLUDED? WE’RE LEARNING TONIGHT. THAT’S TO BE DETERMINED WITH THE EXCLUSION. BE POLITICALLY MOTIVATED. OFFICIALS TELL US NO. GOVERNOR NEWSOM MADE THIS ANNOUNCEMENT PROPOSING THE POSSIBLE REBOOT OF THE EV TAX CREDIT IN A LENGTHY PRESS RELEASE ON MONDAY. THAT PRESS RELEASE MADE NO MENTION OF EXCLUDING TESLA OR ANY OTHER CAR MANUFACTURER IN THIS PROPOSAL. THIS IDEA NEEDS APPROVAL FROM THE LEGISLATURE AND THE GOVERNOR’S OFFICE DID NOT PROVIDE ANY OTHER DETAILS, INCLUDING HOW MUCH THE CREDITS COULD BE AND WHO WOULD BE ELIGIBLE. BUT EVERY SINGLE LITTLE DETAIL WOULD BE NEGOTIATED BETWEEN LAWMAKERS AND THE GOVERNOR, PLUS THE PUBLIC AND INTEREST GROUPS. AS PART OF THE TYPICAL LAWMAKING OR BUDGETING PROCESS IN CALIFORNIA. SO THEN WHERE IS THIS SPECULATION COMING FROM THAT TESLA WOULD BE EXCLUDED? WELL, THE GOVERNOR IS PROPOSING TO SET A MARKET CAP ON WHICH VEHICLES ARE ELIGIBLE FOR THE TAX CREDIT. THE MARKET CAP, AGAIN, IS STILL TO BE DETERMINED AND NEGOTIATED. WE HAVE NO IDEA WHAT IT COULD BE. THERE IS AN ASSUMPTION THAT TESLA COULD POSSIBLY BE EXCLUDED BECAUSE IT DOMINATES THE MARKET. TESLA MODELS Y AND THREE ARE THE BEST SELLING ELECTRIC VEHICLES IN CALIFORNIA, ACCORDING TO THE LATEST DATA FROM AUTO LOOK. NEWSOM’S OFFICE TELLS US OTHER VEHICLES COULD ALSO BE EXCLUDED BASED ON A POTENTIAL MARKET CAP, ACCORDING TO SEVERAL AUTOMOTIVE PUBLISHERS. OTHER BEST SELLING EVS INCLUDE THE CHEVY BOLT, HYUNDAI IONIQ AND VOLKSWAGEN ID4. AGAIN, NOT SAYING THEY WOULD BE EXCLUDED, BUT THOSE ARE OTHER POPULAR CARS THAT MAY OR MAY NOT BE AFFECTED BY ANY MARKET CAP. IN A STATEMENT, GOVERNOR NEWSOM’S SPOKESMAN DANIEL VILLASENOR SAID IF THE INCOMING PRESIDENT DECIDES TO ATTACK THE AUTO INDUSTRY AS THEY CONTINUE TO INNOVATE AND SAVE CONSUMERS AT THE PUMP AND CLEAN OUR AIR, CALIFORNIA WILL STEP IN TO HELP BUT WILL BE SMART ABOUT OUR INVESTMENTS TO FOSTER COMPETITION AND INNOVATION SO ALL CALIFORNIANS CAN BENEFIT FROM THIS TRANSITION. ANOTHER FACT ELON MUSK AND HIS CRITICISM OF NEWSOM’S PLAN SAID IN A POST ON X, QUOTE, EVEN THOUGH TESLA IS THE ONLY COMPANY WHO MANUFACTURES THEIR EVS IN CALIFORNIA, THIS IS INSANE. THIS IS MOSTLY TRUE. TESLA IS THE ONLY MAJOR CAR MAKER MANUFACTURING EVS IN CALIFORNIA, AND THAT’S SOMETHING THE GOVERNOR AND LAWMAKERS CAN CONSIDER AS THEY PUT TOGETHER THIS PROPOSAL. ANOTHER THING THEY CAN CONSIDER TESLAS ARE ELIGIBLE FOR THE FEDERAL TAX CREDIT RIGHT NOW. AND SOME TESLA MODELS WERE ELIGIBLE FOR THE STATE’S TAX CREDIT BEFORE IT PHASED OUT IN 2023. BUT AGAIN, NOTHING IS SET IN STONE. WE CANNOT SAY WITH CERTAINTY WHETHER TESLA WILL BE EXCLUDED FROM CALIFORNIA’S PROGRAM. WE ALSO DO NOT KNOW IF PRESIDENT DONALD TRUMP WILL EVEN GET RID GET OUR POLITICS NEWSLETTER California Capitol Correspondent Would Tesla be excluded from California's proposed zero-emissions vehicle tax credit? And is it politically motivated?Those are questions some are asking since Gov. Gavin Newsom announced he will try to reboot the state's rebate for people who buy electric vehicles if the Trump administration gets rid of the incentives at the federal level. KCRA 3 has learned whether Tesla is excluded is still to be determined, and experts note it would not be politically motivated.Governor Newsom made the announcement in a lengthy press release on Monday, and in it he made no mention of excluding Tesla or any other car manufacturer in the announcement. This idea needs approval from the legislature and the governor's office noted many details are still in the works. That includes how much the credit could be, rules around which specific vehicle prices are eligible, which car buyers could get the credit and other parameters for the program. All of those details would be negotiated between lawmakers and the governor, plus the public and interest groups as part of the typical state lawmaking or budgeting process.So then where is the assumption coming from that Tesla would be excluded? The governor is proposing to set a market cap on which vehicles are eligible for the tax credit, meaning there may be restrictions around car makers who have already sold a certain amount of vehicles that are popular in California. The market cap is another detail that is still to be determined and negotiated. There is speculation that Tesla may be excluded because it dominates the electric vehicle market. Tesla models Y and 3 are the best-selling electric vehicles in California, according to the latest data from the California New Car Dealers Association. Newsom's office told KCRA 3 other vehicles could also be excluded based on a potential market cap, but did not get specific. According to several automotive publishers, other best-selling EVs nationwide include the Chevrolet Bolt, Hyundai Ioniq and Volkswagon ID.4. Based on their popularity, they may also be subject to the market cap. But again, that market cap is still to be determined. Tesla was at first excluded from the state's original tax credit program for EVs because the vehicle price was too high. The company then dropped the price on the models Y and S so they could be eligible. "If the incoming President decides to attack the auto industry as they continue to innovate, save consumers at the pump and clean our air, California will step in to help," said Daniel Villasenor, a spokesman for Gov, Newsom's office. "But we'll be smart about our investments to foster competition and innovation so all Californians can benefit from this transition."In response to the governor's announcement yesterday, Elon Musk noted Tesla is the only company that manufactures its EVs in California. This is mostly true, as Tesla is the only large-scale car manufacturer to make the vehicles in the state. That's something the governor and lawmakers can consider as they put together this proposal. Something else they can consider: Teslas are eligible for the federal tax credit right now. Again, officials note nothing is set in stone. No one can say with certainty whether all Tesla models will be excluded from California's possible program. We also don't know if President Donald Trump will even get rid of the federal tax credits in the first place. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter SACRAMENTO, Calif. — Would Tesla be excluded from California's proposed zero-emissions vehicle tax credit? And is it politically motivated? Those are questions some are asking since Gov. Gavin Newsom announced he will try to reboot the state's rebate for people who buy electric vehicles if the Trump administration gets rid of the incentives at the federal level. Advertisement KCRA 3 has learned whether Tesla is excluded is still to be determined, and experts note it would not be politically motivated. Governor Newsom made the announcement in a lengthy press release on Monday, and in it he made no mention of excluding Tesla or any other car manufacturer in the announcement. This idea needs approval from the legislature and the governor's office noted many details are still in the works. That includes how much the credit could be, rules around which specific vehicle prices are eligible, which car buyers could get the credit and other parameters for the program. All of those details would be negotiated between lawmakers and the governor, plus the public and interest groups as part of the typical state lawmaking or budgeting process. So then where is the assumption coming from that Tesla would be excluded? The governor is proposing to set a market cap on which vehicles are eligible for the tax credit, meaning there may be restrictions around car makers who have already sold a certain amount of vehicles that are popular in California. The market cap is another detail that is still to be determined and negotiated. There is speculation that Tesla may be excluded because it dominates the electric vehicle market. Tesla models Y and 3 are the best-selling electric vehicles in California, according to the latest data from the California New Car Dealers Association. Newsom's office told KCRA 3 other vehicles could also be excluded based on a potential market cap, but did not get specific. According to several automotive publishers, other best-selling EVs nationwide include the Chevrolet Bolt, Hyundai Ioniq and Volkswagon ID.4. Based on their popularity, they may also be subject to the market cap. But again, that market cap is still to be determined. Tesla was at first excluded from the state's original tax credit program for EVs because the vehicle price was too high. The company then dropped the price on the models Y and S so they could be eligible. "If the incoming President decides to attack the auto industry as they continue to innovate, save consumers at the pump and clean our air, California will step in to help," said Daniel Villasenor, a spokesman for Gov, Newsom's office. "But we'll be smart about our investments to foster competition and innovation so all Californians can benefit from this transition." In response to the governor's announcement yesterday, Elon Musk noted Tesla is the only company that manufactures its EVs in California. This is mostly true, as Tesla is the only large-scale car manufacturer to make the vehicles in the state. That's something the governor and lawmakers can consider as they put together this proposal. Something else they can consider: Teslas are eligible for the federal tax credit right now. Again, officials note nothing is set in stone. No one can say with certainty whether all Tesla models will be excluded from California's possible program. We also don't know if President Donald Trump will even get rid of the federal tax credits in the first place.