[omarforgotpwd]

The 200,000 unit cap was part of federal legislation, not state legislation. That was repealed as part of the Inflation Reduction Act under the Biden administration, and replaced with a new system where you qualify for the credit based on the sourcing of your battery materials and other factors.

Here, Newsom is proposing an entirely new incentive that he has designed specifically to exclude Tesla.

[matthewdgreen]

The IRA was able to extend the subsidies for Tesla because it had the considerable resources of the Fedetal government behind it. A state is going to have fewer resources, and so it makes sense to go back to the original and less-generous regime. More practically, Tesla has already received a lot of subsidies and now has large sales and economies of scale, so it’s not very practical for California to allocate limited resources to Tesla rather than companies that haven’t yet reached scalable production.

Of course the very best thing here would be for the Federal government to maintain the subsidies of the IRA, and then California wouldn’t have to step in with its more limited capabilities in the first place. If that’s important to Tesla, I’m sure they have someone who can talk to the incoming administration about it.

[omarforgotpwd]

It makes no sense to subsidize only the players who have low market share. Tesla is the only carmaker that still makes cars in California, why subsidize foreign cars at the expense of California workers… using their own tax dollars?

The only justification for such harmful economic policy is political retaliation against Musk. But it is not the role of the government to use taxpayer funds for political retribution against opponents.