Elon Musk Lauds Ro Khanna, Calls Him A 'Sensible Moderate' After California Democrat Calls Out Gavin Newsom's Exclusion Of Tesla From EV Credit Policy
Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk appreciated support from Rep. Ro Khanna (D-Calif.), who voiced his disapproval of Governor Gavin Newsom’s electric vehicle subsidy plan, which excludes Tesla vehicles.
What Happened: Khanna expressed concerns about the potential impact of political decisions on the electric vehicle industry.
“Tesla created the electric vehicle revolution — I don’t think politics should interfere with manufacturing or an issue of our national competitiveness," he said in an appearance on CNBC.
Musk appreciated Khanna's statement, calling him a "sensible moderate."
The subsidy plan aims to promote electric vehicle adoption but has sparked debate due to its exclusion of Tesla, the sole EV manufacturer in California.
Khanna’s remarks highlight concerns about political influence affecting the manufacturing sector and national competitiveness. The exclusion of Tesla from the subsidy could impact the company’s market presence in California, a significant market for electric vehicles.
The controversy surrounding the subsidy plan raises questions about the criteria used to determine eligibility and the potential implications for the broader electric vehicle market.
Why It Matters: Musk criticized California’s proposal to exclude Tesla from consumer rebates, calling it “insane.” The proposal, outlined by Governor Newsom, includes “market-share limitations” that would exclude Tesla’s popular EV models from tax credit eligibility.
This situation mirrors a previous incident where Musk’s mother, Maye Musk, criticized President Biden for ignoring Tesla at an EV summit in 2021, despite Tesla’s significant contributions to the electric vehicle industry.
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