California is facing a multi-billion dollar deficit, but Governor Gavin Newsom says he will use state money to substitute for a $7,500 federal electric vehicle tax credit that Donald Trump vows to kill.
“We will intervene,” he vows. “Doubling down on our commitment to clean air and green jobs in California.”
So let’s do the math here. There are roughly 1.8 million cars sold each year in California. Let’s say half of them are EVs – as new car buyers take advantage of the subsidies. This means California’s budget would swell by another $5 billion – which could double the state’s existing annual deficit.
And to top it off – Newsom is planning to exclude Tesla from his new subsidies, for no apparent reason, except that Elon Musk supports President Trump.