Tesla Faces Uncertainty Over California Tax Credits If Federal EV Subsidy Is Eliminated

Benzinga

Tesla may not qualify for California's new state tax credits under a proposal if President-elect Donald Trump eliminates the federal tax credit for electric vehicle purchases. Tesla CEO Elon Musk criticized the proposal, highlighting that Tesla is the only automaker producing EVs in California. Newsom, responding to potential federal cuts, plans to propose a new version of California's Clean Vehicle Rebate Program. The state is facing a $2 billion budget deficit and uncertainty surrounds the program's costs and structure. Tesla shares dropped 4% on Monday, with a further dip in after-hours trading.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Tesla may not qualify for California's new state tax credits under a proposal if

00:06President-elect Donald Trump eliminates the federal tax credit for electric vehicle purchases.

00:11Tesla CEO Elon Musk criticized the proposal, highlighting that Tesla is the only automaker

00:16producing EVs in California. Newsom, responding to potential federal cuts, plans to propose a

00:22new version of California's clean vehicle rebate program. The state is facing a $2 billion budget

00:28deficit and is uncertain about surroundings of the program's cost and structure. Tesla

00:34shares did drop 4% on Monday with a further dip in after-hours trading.

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