Imagine this: California Governor Gavin Newsom has a plan up his sleeve if President-elect Donald Trump ousts a federal tax credit for electric vehicles. He's talking about restarting the state's Clean Vehicle Rebate Program, which has previously offered financial incentives on over 590, 000 vehicles. This program could become crucial if the Trump administration decides to tweak the rules around those federal rebates, such as reducing the money available or limiting who can get them.

Why does this matter? Well, many American carmakers, including Ford and General Motors, depend on these federal subsidies to push their electric vehicle agenda. Tesla, while it might not be as affected due to its higher profit margins, also benefits from the current system. Newsom's announcement also comes on the heels of his plan to convene a special session in December to protect "California values, " from what he sees as threats from the incoming administration.

Governor Newsom isn't just standing pat; he's been vocal about California's resistance to the Trump administration's clean transportation policies. In 2019, California and 22 other states sued over Trump's revocation of their ability to set greenhouse gas emission and fuel economy standards for vehicles. This isn't an isolated incident either—California and the Trump administration have clashed over many issues, like gun control, health care, education, and immigration.

So, the stage is set for a battle between California's push for clean energy and whatever changes the Trump administration might have in store.

California's Plan to Counter Trump's EV Tax Credit Cuts

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