California Governor Gavin Newsom has announced a contingency plan to offer subsidies to electric vehicle buyers if former U.S. President Donald Trump is elected and subsequently removes the $7,500 federal subsidy for electric vehicles. This proposal, however, excludes Tesla (TSLA, Financial) from receiving such subsidies.
The governor's office clarified that the new plan will enforce market share restrictions. This means that popular electric vehicle models from Tesla will not qualify for the subsidies. The move aims to improve market conditions and provide advantages to a broader range of automakers. However, specific details still require negotiation with the state legislature.
