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Tesla excluded from qualifying for California EV credits as Newsom pushes back

Credit: Tesla

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California Governor Gavin Newsom has proposed new plans to offer an electric vehicle (EV) rebate if President-elect Donald Trump repeals the $7,500 federal tax credit, though Newsom’s office has also said the rebate would exclude Tesla, the nation’s largest EV maker, in efforts to boost competition from other automakers.

On Monday, Newsom proposed the plans to offer additional state incentives by rebooting a previously expired program, if the federal credit is removed under the incoming Trump administration. However, following the announcement, the Governor’s office told Bloomberg that Tesla’s popular EV models would likely be excluded, likely to the dismay of CEO Elon Musk and others within the company’s vast community of owners and shareholders.

“It’s about creating the market conditions for more of these car makers to take route,” Newsom’s office said in a statement.

Tesla continues California domination, still holding over 50 percent EV market share

While most of Tesla’s models do currently qualify for the $7,500 federal credit, the move would be expected to spur on broader EV adoption across other automakers with less popular EV models. The statements also come following larger feuds between Democratic Newsom and Musk, after the Tesla CEO lambasted the state for COVID-19 closures that included the company’s Fremont factory.

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Despite the statements, the terms of a potential EV rebate for California buyers are still under negotiation and are subject to change.

While Tesla’s engineering headquarters remains in California, located in Palo Alto, the automaker officially moved its headquarters to Austin, Texas in 2021—though Musk reiterated then that operations would continue to ramp in Fremont and Palo Alto despite the move.

California has also remained the U.S. leader on EV adoption, mirroring many countries in Europe that have embraced the tech. According to some studies, sales trends across the U.S. have appeared to be following a similar trajectory to that of the West Coast state over the past few years, falling just a couple of years behind those in the state.

It’s unclear at this point how the repeal of a $7,500 EV tax credit would affect nationwide EV sales, though Musk has claimed that it would actually come to the benefit of Tesla, as other automakers rely more heavily on the credit for sales.

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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

California Governor Gavin Newsom visits Tesla Gigafactory Shanghai

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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SpaceX secures FAA approval for 44 annual Starship launches in Florida

The FAA’s environmental review covers up to 44 launches annually, along with 44 Super Heavy booster landings and 44 upper-stage landings.

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Credit: SpaceX

SpaceX has received environmental approval from the Federal Aviation Administration (FAA) to conduct up to 44 Starship-Super Heavy launches per year from Kennedy Space Center Launch Complex 39A in Florida. 

The decision allows the company to proceed with plans tied to its next-generation launch system and future satellite deployments.

The FAA’s environmental review covers up to 44 launches annually, along with 44 Super Heavy booster landings and 44 upper-stage landings. The approval concludes the agency’s public comment period and outlines required mitigation measures related to noise, emissions, wildlife, and airspace management.

Construction of Starship infrastructure at Launch Complex 39A is nearing completion. The site, previously used for Apollo and space shuttle missions, is transitioning to support Starship operations, as noted in a Florida Today report.

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If fully deployed across Kennedy Space Center and nearby Cape Canaveral Space Force Station, Starship activity on the Space Coast could exceed 120 launches annually, excluding tests. Separately, the U.S. Air Force has authorized repurposing Space Launch Complex 37 for potential additional Starship activity, pending further FAA airspace analysis.

The approval supports SpaceX’s long-term strategy, which includes deploying a large constellation of satellites intended to power space-based artificial intelligence data infrastructure. The company has previously indicated that expanded Starship capacity will be central to that effort.

The FAA review identified likely impacts from increased noise, nitrogen oxide emissions, and temporary airspace closures. Commercial flights may experience periodic delays during launch windows. The agency, however, determined these effects would be intermittent and manageable through scheduling, public notification, and worker safety protocols.

Wildlife protections are required under the approval, Florida Today noted. These include lighting controls to protect sea turtles, seasonal monitoring of scrub jays and beach mice, and restrictions on offshore landings to avoid coral reefs and right whale critical habitat. Recovery vessels must also carry trained observers to prevent collisions with protected marine species.

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Texas township wants The Boring Company to build it a Loop system

The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge.”

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Credit: The Boring Company

The Woodlands Township, Texas, has formally entered The Boring Company’s tunneling sweepstakes. 

The township’s board unanimously approved an application to The Boring Company’s “Tunnel Vision Challenge,” which offers up to one mile of tunnel construction at no cost to a selected community.

The Woodlands’ proposal, dubbed “The Current,” features two parallel 12-foot-diameter tunnels beneath the Town Center corridor near The Waterway. Teslas would shuttle passengers between Waterway Square, Cynthia Woods Mitchell Pavilion, Town Green Park and nearby hotels during concerts and large-scale events, as noted in a Chron report.

Township officials framed the tunnel as a solution for the township’s traffic congestion issues. The Pavilion alone hosts more than 60 shows each year and can accommodate crowds of up to 16,500, often straining Lake Robbins Drive and surrounding intersections.

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“We know we have traffic impacts and pedestrian movement challenges, especially in the Town Center area,” Chris Nunes, chief operating officer of The Woodlands Township, stated during the meeting.

“The Current” mirrors the Loop system operating beneath the Las Vegas Convention Center, where Tesla vehicles transport passengers through underground tunnels between venues and resorts.

The Boring Company issued its request for proposals (RFP) in mid-January, inviting cities and districts to pitch local uses for its tunneling technology. The Woodlands must submit its application by Feb. 23, though no timeline has been provided for when a winning community will be announced.

Nunes confirmed that the board has authorized a submission for “The Current’s” proposal, though he emphasized that the project is still in its preliminary stages.

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“The Woodlands Township Board of Directors has authorized staff to submit an application to The Boring Company, which has issued an RFP for communities interested in leveraging their technology to address community challenges,” he said in a statement. 

“The Board believes that an underground tunnel would provide a safe and efficient means to transport people to and from various high-use community amenities in our Town Center.”

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Tesla Model Y wins 2026 Drive Car of the Year award in Australia

The Model Y is already Australia’s best-selling EV in 2025 and the tenth best-selling vehicle overall.

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Credit: Tesla

The Tesla Model Y has been named 2026 Drive Car of the Year overall winner, taking the top honor after being judged as the vehicle that “moves the game forward the most for Australian new car buyers.” 

The Model Y is already Australia’s best-selling EV in 2025 and the tenth best-selling vehicle overall, but the vehicle’s Juniper update strengthened its case with new ownership benefits and expanded software capability.

Drive’s overall award compares category winners and looks at which model most significantly advances the local new car market. In 2026, judges pointed to the Model Y’s five-year warranty and the availability of Full Self-Driving (Supervised) as a monthly subscription as key differentiators.

Priced from AU$58,900 before on-road costs, the all-electric crossover SUV offers a lot of value compared to similarly sized petrol and hybrid rivals. The ability to access Tesla’s Supercharger network across Australia also reduces friction for buyers moving to EV ownership.

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Owners can add FSD (Supervised) for AU$149 per month. While it still requires driver oversight, the system expands the vehicle’s advanced driver-assistance capabilities and reflects Tesla’s software-first approach.

“The default choice for a reason. The Tesla Model Y makes the transition to electric both effortless and rewarding,” Drive wrote.

The 2025 Model Y facelift also sharpened the vehicle’s exterior, highlighted by a distinctive rear light bar that gives the crossover SUV a more modern road presence.

Drive described the Model Y as a benchmark for combining practicality, efficiency and technology at an accessible price point. With eligibility for federal Fringe Benefit Tax exemptions through novated leasing, its value proposition has improved for numerous buyers.

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For 2026, the Model Y’s combination of range efficiency, charging access and software capability proved decisive. Ultimately, the award all but cements the Model Y’s position as one of the most influential vehicles in Australia’s evolving new-car market today.

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