Full Breakdown
Gavin Newsom Critiques Elon Musk's Impact on Electric Vehicle Industry
3/26/2026, 12:12:05 AM
Newsom's Disappointment with Musk
California Governor Gavin Newsom has publicly criticized Tesla and SpaceX founder Elon Musk, labeling him “one of the great disappointments” in the electric vehicle (EV) sector. In an interview with Axios, Newsom acknowledged Musk's contributions to innovation in the EV space but expressed concern over Musk's decisions that he believes could hinder American competitiveness. Newsom specifically pointed to Musk's role in allowing China to dominate the global EV market, which currently accounts for 70% of the industry. He warned that this could lead to significant setbacks for American legacy automobile manufacturers.
The Role of California in EV Innovation
Newsom highlighted California's regulatory environment as a critical factor in fostering Musk's success. He stated that the state's embrace of electric vehicles created the conditions necessary for Musk to thrive, suggesting that without such support, Musk may not have achieved his current level of wealth and influence. Newsom referred to Musk as the “Edison of our time” for his pioneering work in the EV sector, but he criticized Musk for allegedly shifting focus away from electric vehicles to other technologies, such as robotics and humanoids.
Impact of Federal Policies on EV Sales
The governor's remarks come amid a broader context of declining EV sales in the United States, which have dropped by 26.8% compared to the previous year. This decline has been attributed in part to the Trump administration's anti-EV policies, including the elimination of the $7,500 electric vehicle tax credit. Newsom indicated that he hopes to reinstate a version of this tax credit in California to stimulate the market and support the state's commitment to electric vehicles.
Criticism & Opposition
While Newsom's critique of Musk reflects concerns about American innovation and competitiveness, it also highlights a growing tension between state-level support for EVs and federal policies that may undermine that progress. Critics of the current administration's stance on electric vehicles argue that without supportive measures, the U.S. risks falling further behind in the global EV race.
Official Statements & Responses
In his interview, Newsom stated, “He’s going to allow I think one of the most significant own goals in the next decade [which] is ceding the EV space to China.” He emphasized the importance of California's regulatory framework in enabling Musk's success, asserting that “it was regulation in California that created the conditions that allowed him to take the risk to become the multibillionaire, maybe trillionaire, that he’s become.”
What's Next
As the debate over electric vehicle policies continues, California's efforts to reinstate tax incentives for EV purchases may play a crucial role in shaping the future of the industry. Newsom's comments signal a potential push for renewed support for electric vehicles at the state level, even as federal policies remain a point of contention.
