Elon Musk, CEO of Tesla Inc., has expressed his appreciation for support from Rep. Ro Khanna (D-Calif.), who recently criticized Governor Gavin Newsom’s electric vehicle subsidy plan for excluding Tesla vehicles.
What Happened
Rep. Khanna voiced his disapproval of the subsidy plan, which he believes could interfere with the electric vehicle industry and affect national competitiveness. “Tesla created the electric vehicle revolution — I don’t think politics should interfere with manufacturing or an issue of our national competitiveness,” Khanna said during an appearance on CNBC.
Musk’s Response
Musk responded by praising Khanna, calling him a “sensible moderate.”
Rep. Khanna is a sensible moderate - Elon Musk
Controversy Surrounding Subsidy Plan
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.
Why It Matters
Musk had previously criticized California’s proposal to exclude Tesla from consumer rebates, calling it “insane.” The proposal 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.
Implications
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. As the debate continues, it remains to be seen how the situation will play out and what impact it will have on the electric vehicle industry.