Elon Musk fires back on excluding Tesla from California’s new EV incentive he wants to kill
Elon Musk fired back at California Governor Gavin Newsom who said the state might exclude Tesla from a new EV incentive meant to replace the federal one Musk is trying to kill.
The knives are out.
As we previously reported, Trump’s transition team has already been strategizing about how to repeal the Inlfation Reduction Act and more specifically, the updated federal tax credit for electric vehicles.
Elon Musk is supporting the move even though he admitted that it would hurt EV sales in the US, including Tesla’s, but he believes long term it would help Tesla, which has a more competitive cost structure than other EV manufacturers who could fail without the credits – much like Tesla could have failed with them just a few years ago.
Recently, we even learn that Tesla, which lobbied to get the new federal tax credit, is also now lobbying for Trump to remove it.
Yesterday, we reported that California announced that if the federal tax credit does go away under Trump next year, it will step in with its own extra credit to compensate for it.
Governor Gavin Newsom has since elaborated on the proposal to add a market-share limitation criteria for EVs that would exclude Tesla, which has the most EV market shares in the market. The goal is reportedly to “create the market conditions for more of these car makers to take root.”
Tesla CEO Elon Musk called the proposal “insane”:
Tesla is the only one making cars in California, so this move hurts jobs in California.
Tesla employs many people in California, especially at its Fremont factory in the Bay Area, but it also employs engineering and design teams in both southern and northern California.
It sounds like Musk, who is lobbying to remove the federal tax credit, believe that Tesla might have to cut jobs in California if this plan is executed.
Electrek’s Take
As you know if you have been following my commentary on Musk using and not using his influence on Trump to advance EVs in the US, I am really disappointed in him pushing to kill the federal tax credit.
It will undoubtedly slow down EV adoption in the US, which is already lagging behind the rest of the world, and it feels like Tesla is pulling the very useful ladder it itself used just as it doesn’t need it as much and other EV companies greatly need it.
That said, I’m not sure I agree with Newsom’s approach here. Before the Tesla exclusion was discussed, I actually tweeted this:
Since the goal is to replace the federal tax credit, I think it makes sense that California would exclude anyone company who is lobying against it, like Tesla, rather than just because of market shares. They are asking for it, after all.
I think it’s a better reason to exclude them than just: you guys already have too high market shares.
You want to slow EV adoption to gain a competitive advantage, then that’s what you get. Musk couldn’t complain about that without being a hypocrite – though that doesn’t seem to be a big concern for him these days.
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Environment
U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears
A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025.
Pavel Mikheyev | Reuters
U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.
Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.
Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.
Oil futures, 5 years
The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.
Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.
Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.
Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)
What’s going on in Illinois?
While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.
At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).
We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.
SOURCES: Chicago Business, Ray Cunningham; featured image by the author.
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The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.
Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.
XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.
We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).
XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?
Easy in, easy out
The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.
You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.
SOURCE | IMAGES: XCMG.
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