SACRAMENTO, Calif. — California's rebate program for zero-emission vehicles might be coming back after it was phased out last year if President-elect Donald Trump and Congress look to repeal the federal tax credit for those who buy new electric vehicles.
The announcement sparked backlash from Elon Musk who believes it would exclude Tesla from the program. The governor's office told ABC10 that's not how it will work.
During a press conference in Fresno last week, Governor Gavin Newsom says California drivers are committed to investing in zero-emission vehicles.
"It was 25% of all new car purchases. That wasn't a mandate, that was just consumer choice," said Newsom.
Newsom says he will focus on bringing back the state's ZEV rebate program if the Trump administration and the now Republican-controlled Congress seek to repeal the $7,500 federal tax credit for people who buy new electric vehicles.
California's rebate program was phased out in 2023, but Newsom says drivers continue to buy these vehicles.
"They're already moving in this direction, closing in on close to 2 million alternative fuel vehicles. It's not an electric vehicle mandate. It's never been an electric vehicle mandate," said Newsom.
The governor's announcement came with criticism when he mentioned the proposed rebates would include changes to promote innovation and competition. Believing Tesla would be excluded from the program, Musk posted on X saying Tesla is the only company who manufactures its EVs in California. He adds, "this is insane."
The governor's office says this program and any potential market cap would have to be negotiated through the legislature and implemented by the California Air Resources Board (CARB). The governor's office adds it is not targeting any company and creating competition is not a new idea, reiterating this program would only be revisited if the Trump administration ends its federal program.
WATCH MORE ON ABC10: Can California afford a fight against the Trump Administration?
