Democratic Congressman urges Newsom to include Tesla in EV rebate after exclusion

(The Center Square) - Prominent Democratic Congressman Ro Khanna, D-Calif., urged Gov. Gavin Newsom to include Tesla in the governor’s plans for a California electric vehicle credit — which Newsom said would not include Tesla.

Earlier on Monday, Newsom announced his plan to create a California credit if the Trump administration follows through with plans to nix the $7,500 federal EV credit.

“Tesla makes over 550,000 vehicles in Fremont in my district & employs over 20,000,” said Khanna on X. “Let's not play politics with keeping manufacturing in California. It would be foolish to exclude Tesla. Have we learned nothing from snubbing [Elon Musk] at the Biden EV summit?”

In 2021, President Joe Biden held an electric vehicle summit at the White House, notably not inviting Elon Musk, whose Teslas were half of electric vehicles sold in the U.S. at the time.

After Trump’s re-election, Musk responded to a video of Biden telling General Motors CEO Mary Barra she “led” and “electrified the entire automobile industry."

“You will not find a better friend than me, nor a worse enemy,” said Musk on X.

The Wall Street Journal reported Musk’s snubbing at the EV summit was a headline factor in Musk's decision to oppose Democrats and back Trump.

According to the IRS, the current $7,500 federal EV credit is income limited to individual earners making up to $150,000, heads of households making up to $225,000, and married couples making up to $300,000 per year. The vehicles also have a price limit of $55,000 for a sedan, or under $80,000 for a SUV or truck, and must be assembled in the US and meet battery and mineral requirements to qualify for the full $7,500 nonrefundable tax credit.