Trump could make it tougher to afford EV. Why Elon Musk doesn’t mind

Tesla vehicles at the carmaker's factory in Fremont, Calif., in April 2022.

By Ryan FonsecaStaff Writer

Nov. 18, 2024 6:30 AM PT

Good morning. Here’s what you need to know to start your day.

Trump could kill Biden’s $7,500 electric vehicle tax credit.
Nevada just banned “slavery and involuntary servitude” in prisons. Why didn’t California?
Some Los Angeles farmers markets are thriving, but others are fighting to survive.
And here’s today’s e-newspaper.

What happens to California’s growing EV sales under Trump?

Californians drive a lot, and a growing share of the cars we’re driving are electric. More than 441,000 zero-emission vehicles were sold in the state last year, according to state data. Put another way, roughly one out of every three ZEVs sold in the U.S. is sold in the Golden State.

Hastening the transition to vehicles that don’t burn fossil fuels has been a major policy push from both Gov. Gavin Newsom and President Biden. And to incentivize drivers to make the switch, the Biden administration created a $7,500 consumer tax credit that saved car buyers more than $1 billion this year alone.

But Donald Trump’s return to the Oval Office next year puts the future of the ZEV transition in jeopardy. He hasn’t shied away from his support for more oil and gas drilling, nor his intention to repeal environmental regulations meant to mitigate the growing hazards of our warming planet.

Reuters was first to report last week that Trump’s transition team plans to ax the tax credit. That’s welcome news to Elon Musk, whose Tesla Motors is the state‘s and nation’s most popular purveyor of electric cars.

A man in dark clothes jumps up, with arms raised, onstage next to a man in a suit, standing a lectern with a clear shield

“Take away the subsidies,” Musk posted to his X platform in July. “It will only help Tesla.”

How does that make sense? As The Times’ Russ Mitchell explained this week, Tesla’s market dominance has given Musk a major advantage.

“Tesla is profitable, and the EV business at the traditional automakers as yet is not,” Russ wrote. “Taking away buyer credits would hurt them more than it would hurt Tesla, whose EV market share has begun to drop in the face of new competition.”

The subsidy shakeup could have a notable effect in California, where Musk’s cars have become a roadway fixture. More than half of all ZEVs sold in California last year were Tesla models, according to state data.

The largest concentration, unsurprisingly, is in populous, car-clogged Los Angeles County, where drivers bought more than 57,400 Teslas in 2023 — roughly a quarter of all sold in the state sales.

Even as he looks to edge out his competitors, Musk’s influence over Trump may soften the former and future POTUS’ actions on EVs. Russ detailed the many moving parts of the EV transition that Trump (with Musk at his ear) will almost certainly reshape once in office.

“Trump has long railed against EV mandates and subsidies,” Russ wrote. “Then came August, when Musk endorsed Trump and began pouring millions of dollars into the Trump campaign. Not long after, Trump said he was now in favor of some market share for EVs.”

Tesla’s sliding sales in left-leaning California may continue, if enough would-be buyers decide Musk’s full-throated support for Trump is a deal-breaker. Some Tesla owners have opted for a bumper sticker to distance themselves from Musk’s brand of political discourse. Though, for most, it’s probably easier to delete your X account than ditch your Model X.

Today’s top stories

A man with glasses, in a blue shirt, stands outside classroom doors holding a laptop computer.

Election aftermath

Nevada just banned “slavery and involuntary servitude” in prisons. Why didn’t California?
California’s protections for transgender care could be tested under Trump.
Laphonza Butler reflects on her brief Senate career, the presidential race and her future
Times columnist George Skelton writes that voters sent a clear message to Newsom and Democrats: We’re fed up.
Here’s what the incoming Trump presidency means for L.A.’s 2028 Olympics.

Health and public safety

One person has died and dozens have been sickened after eating carrots contaminated with E. coli from a Bakersfield-based farm.
The first U.S. case of a more severe mpox variant was reported in San Mateo County.
A plane crashed at a Pomona drag strip, jolting the National Hot Rod Assn. championship finals.
A magnitude 3.4 earthquake rattled Fontana on Saturday night, though no injuries or damage were reported.

What else is going on

An Orange County firefighter who feared he was paralyzed after his crew truck crashed on the freeway walked out of rehab last week.
Tyler, the Creator, as well as Doechii, Vince Staples and more light up Day 1 of Camp Flog Gnaw at Dodger Stadium.
TNT’s “Inside the NBA” will move to ESPN next year.

Get unlimited access to the Los Angeles Times. Subscribe here.

Commentary and opinions

Robin Abcarian: George Gascón, ousted as L.A. County’s top prosecutor, was his own worst enemy.
Jackie Calmes: Trump’s out-of-the-gate choices could make for a Cabinet of avengers.
Times editorial board: How California leaders can protect the environment from another Trump administration.
Guest opinion: Democrats are finger-pointing. Does the evidence support them?
LZ Granderson: Being Black and going country is not a contradiction — just ask sister-act BoykinZ.

This morning’s must reads

White bins of fruit include plums, apples and persimmons.

Some Los Angeles farmers markets are thriving, but others are struggling. Times food writer Stephanie Breijo visited two that are at risk of shutting down. “This possibility has sparked a last-ditch fundraising effort by the nonprofit group that runs the markets to save their presence in areas where some residents are food-insecure,” she writes.

How can we make this newsletter more useful? Send comments to [email protected].

For your downtime

Hikers on a narrow, hilly trail with vegetation, with blue skies as a backdrop

Going out

🥾 You can still hike the scenic Palos Verdes Peninsula. Here are five safe trails that avoid the landslides.
🍽️ This downtown Los Angeles restaurant is bringing some much-needed daytime energy to the city’s lunch scene.
🎨 Catch Teresa Tolliver’s exhibit “Sitting on the Edge of Reality” at Parrasch Heijnen Gallery.

Staying in

📺 TV shouldn’t ignore the working class. This acclaimed U.K. series shows why.
🥦 Here’s a recipe for caramelized lemon pasta with mushrooms and broccoli.
✏️ Get our free daily crossword puzzle, sudoku, word search and arcade games.

A question for you: What is your favorite movie that captures the essence of California?

From “Lady Bird” to “Troop Beverly Hills,” the Golden State has starred in a wide range of movies. What’s your favorite one?

Email us at [email protected], and your response might be included in the newsletter this week.

And finally ... your photo of the day

Show us your favorite place in California! Send us photos you have taken of spots in California that are special — natural or human-made — and tell us why they’re important to you.

Facing the ocean, the sun is seen reflected in a high tide at an empty beach.

Today’s great photo is from Stephen Blakesley of San Diego: a king tide as seen from Torrey Pines State Beach.

Stephen writes: “Our astronomical king tides occur only four times each year due to the full moon’s close distance and additional gravitational tidal forces. We are fortunate to experience the vast beach exposed by the king tide minus-tide symmetry. The first humans on the Pacific coast walked these same endless tidal beaches thirty thousand solar years ago.”

Have a great day, from the Essential California team

Ryan Fonseca, reporter
Amy Hubbard, deputy editor, Fast Break

Check our top stories, topics and the latest articles on latimes.com.