"California Gov. Gavin Newsom wanted his state to be the firewall that protected the public (and automakers) from the reality of the federal electric-vehicle tax credit going away. He pledged that Sacramento would step in and take up the slack created by the feds, but it wasn't quite clear where the money was going to come from. With time running out on the tax credit and California already operating at a deficit, the unfortunate reality has rolled in that the state won't be able to foot the bill."
"But the true blame for the anti-EV measures cooked up in the Big Beautiful Bill? According to Newsom, that's the American auto manufacturers, led by General Motors. Welcome back to Critical Materials, your daily roundup for all things electric and tech in the automotive space. Also on deck: BYD issues a warning to Western automakers and Tesla's first Full Self-Driving lawsuit in China is filed. Let's jump in."
"California will not backfill a $7,500 federal tax credit for buyers of electric vehicles that is set to expire this month, Gov. Gavin Newsom said, reversing an earlier pledge to restart the state's own EV subsidies. "We can't make up for federal vandalism of those tax credits," Newsom said during a press conference Sept. 19 in San Francisco. The state will support expanding EV infrastructure, but "not the direct subsidies that we cannot make"
California cannot reinstate a $7,500 federal electric-vehicle tax credit for buyers and will not backfill that subsidy due to budget constraints and an approaching expiration. The state plans to redirect taxpayer funding toward EV infrastructure projects rather than direct consumer subsidies. The change follows assertions that American automakers, led by General Motors, played a role in shaping the policy environment that reduced incentives. Market dynamics include competitive warnings from BYD to Western automakers and legal developments such as Tesla's first Full Self-Driving lawsuit in China.
Read at InsideEVs
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