Tesla's electric vehicles likely would not qualify for California's new state tax credits under a proposal in the works if President-elect Donald Trump scraps the federal tax credit for EV purchases,

California Gov. Gavin Newsom announced Monday he will provide $7,500 electric vehicle rebates for his state if President-elect Donald Trump and congressional Republicans dismantle the federal credit – one of several consumer cost-saving measures in President Joe Biden’s climate bill.

Federal EV tax subsidies may be on the chopping block. However, Governor Gavin Newsom of California has single-handedly solved the problem. Ironically, he also creates a strong argument for discontinuing the long-running federal EV support.