California to restart ZEV rebate if federal credit eliminated, may exclude Tesla

California, which notes that it has surpassed 2M zero-emission vehicles, or ZEV, sold, “reaffirming California’s status as the country’s leader in clean vehicles,” notes that Governor Gavin Newsom announced that if the incoming Trump Administration eliminates a federal ZEV tax credit, he will propose creating a new version of the state’s successful Clean Vehicle Rebate Program, which was phased out in 2023. The proposed California rebates, which would include changes to promote innovation and competition in the ZEV market, could come from the Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program, the state noted. The governor’s office told Bloomberg News that the current proposal includes market-share limitations that would exclude Tesla (TSLA) EV models. The details will be under negotiation with the state legislature and could change. “It’s about creating the market conditions for more of these car makers to take route,” according to the governor’s office. Other publicly traded automakers include Ford (F), General Motors (GM), Honda (HMC), Mercedes-Benz (MBGYY), Nissan (NSANY), Stellantis (STLA), Toyota (TM) and Volkswagen (VWAGY).