Photo: Pixabay.com
Two seemingly unrelated news came from California this week, but they compound to change the automotive landscape in the most EV-friendly state in the U.S. One is Tesla losing the generous state subsidies that helped it gain traction in California and the second one is about an $11 billion relief package that Governor Newsom proposed to alleviate the effect of high gas prices. Unless anything changes in the future, this looks set to incentivize buying ICE vehicles.
Tesla got a lot of help from the state of California, and it was one of the reasons the EV carmaker got so successful. The rebates and deductions for owning an electric vehicle in California were so enticing that one in five cars sold in the Golden State is a Tesla. The relationship worked both ways, as the sales of EVs helped California to meet its stringent clean air targets.
But now the most popular Tesla vehicles – the Model 3 and Model Y – have been excluded from the California Clean Vehicle Rebate Project (CVRP). The reason is the recent price hike across all Tesla model ranges. Vehicles on the CRVP list need to have an MSRP not higher than $45,000 for cars or $60,000 for SUVs. Needless to say, neither Model 3 nor Model Y meets these requirements anymore after the recent price increase. The cheapest Tesla Model 3 has an MSRP of $46,990, while Model Y starts at $62,990 now.
At the same time, it’s all but certain that the residents of California will receive a stipend of up to $800 to pay for gas. This is a measure proposed by Governor Gavin Newsom as part of an $11 billion relief package designed to help state residents offset high gas prices. For people who don’t have cars, the proposal involves paying for bus or train fare for three months. If the measure passes the California state assembly, the debit cards will be in residents’ hands as soon as July.
With gas prices soaring in recent weeks, state governments across the country have tried to find ways to lower the burden on people. The most popular choices were slashing fuel taxes or offering rebates to taxpayers. Maryland and Georgia have temporarily suspended their state’s gas taxes, while California, Kansas, and Minnesota have proposed giving money directly to taxpayers.
But now the most popular Tesla vehicles – the Model 3 and Model Y – have been excluded from the California Clean Vehicle Rebate Project (CVRP). The reason is the recent price hike across all Tesla model ranges. Vehicles on the CRVP list need to have an MSRP not higher than $45,000 for cars or $60,000 for SUVs. Needless to say, neither Model 3 nor Model Y meets these requirements anymore after the recent price increase. The cheapest Tesla Model 3 has an MSRP of $46,990, while Model Y starts at $62,990 now.
At the same time, it’s all but certain that the residents of California will receive a stipend of up to $800 to pay for gas. This is a measure proposed by Governor Gavin Newsom as part of an $11 billion relief package designed to help state residents offset high gas prices. For people who don’t have cars, the proposal involves paying for bus or train fare for three months. If the measure passes the California state assembly, the debit cards will be in residents’ hands as soon as July.
With gas prices soaring in recent weeks, state governments across the country have tried to find ways to lower the burden on people. The most popular choices were slashing fuel taxes or offering rebates to taxpayers. Maryland and Georgia have temporarily suspended their state’s gas taxes, while California, Kansas, and Minnesota have proposed giving money directly to taxpayers.
Google News