California EV Buyers Betrayed: Newsom Abandons Incentive Promise

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California’s electric vehicle (EV) dream is hitting a roadblock. Governor Gavin Newsom has backtracked on his pledge to replace the federal EV tax credit, set to expire on September 30, 2025, leaving drivers, car dealerships, and automakers in the lurch. Citing a massive $68 billion budget deficit, Newsom is redirecting funds to infrastructure over consumer rebates, a move that could stall the state’s aggressive green agenda and burden hardworking Californians.

California has positioned itself as the EV capital of America, with the federal tax credit of up to $7,500 making these vehicles more affordable. When the credit’s expiration loomed, Newsom promised a state-level rebate to keep EVs within reach, reassuring families and businesses. That promise is now dead. Instead of supporting consumers, Newsom’s administration is funneling cap-and-trade revenue—about $3.5 billion annually—into expanding EV charging stations, leaving buyers to shoulder the full cost of EVs.

This isn’t a minor tweak; it’s a gut punch to California’s drivers and automotive industry. Let’s break down the fallout.

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