California Governor Gavin Newsom has reversed a pledge to bring back the state’s EV tax credit, a move that could impact thousands of buyers as the federal incentive winds down. 

Instead of reviving rebates, Newsom stated that the state would redirect funds toward expanding charging infrastructure.

California’s focus shift

During a San Francisco event on September 19, where he signed six climate-related bills, Newsom outlined the state’s pivot, as noted in an Autoblog report. While reiterating California’s leadership in clean transportation, Newsom emphasized that cap-and-trade revenues would bolster charging investments rather than consumer incentives.

“We can’t make up for federal vandalism of those tax credits. There are billions and billions of dollars through 2045 in the cap-and-trade program that continue to make those infrastructure investments, but not the direct subsidies, that we cannot make up for, that were eliminated under the federal program,” Newsom stated.

California’s EV sector

California accounted for about 27% of all U.S. EV sales in 2024, highlighting the state’s central role in adoption, as per data from the Alliance for Automotive Innovation. Industry watchers have warned that without incentives, momentum could slow, though the success of Tesla’s vehicles like the Model Y suggests that good EVs could see success even without the federal tax credit.

Newsom also criticized Detroit automakers, singling out General Motors and CEO Mary Barra for what he described as “selling out” the state by opposing its 2035 ban on new gasoline vehicle sales. That regulation, known as Advanced Clean Cars II, is expected to cut greenhouse gas emissions by more than 35%, according to the California Air Resources Board.

Tesla is testing its Robotaxi in one major Texas city for the first time, as it appears the company will attempt to expand outside of Austin in a move that shows expansion remains a key focus.

Tesla ground-truth validation vehicles equipped with LiDAR rigs were spotted in Plano, Texas, a smaller city located northeast of downtown Dallas, the state’s third-most populous city.

🚨 Tesla is doing ground validation for Robotaxi expansion in Plano, TX.

Plano is just northeast of downtown Dallas https://t.co/T2xF8yXH74

— TESLARATI (@Teslarati) September 24, 2025

Typically, this is a telltale sign that Tesla is preparing for Robotaxi operations in a new area. The company has utilized LiDAR-equipped ground-truth vehicles to essentially cross its Ts in regions that are unfamiliar to the company’s Robotaxi operations.

It also used them in the past with newer versions of Full Self-Driving before they were released to the public.

The expansion of Tesla’s Robotaxi platform has been a major focus for the company as it attempts to gain regulatory permission to operate in new states. Recently, it gained approval for testing in both Arizona and Nevada.

Many believe the ride-hailing service will soon be available in Florida as well.

However, this expansion would be the first where Tesla expands to a new city in a state where it is already operating. Texas was its first Robotaxi-active state, as it launched the service in Austin back on June 22.

It also expanded to California shortly after launching in Texas, as it introduced a large service area in the Bay Area. However, Tesla is doing things a little differently in California, as it is keeping its “Safety Monitors” in the driver’s seat for the duration of operation there.

Elon Musk says Tesla will take Safety Drivers out of Robotaxi: here’s when

In Texas, the driver’s seat is only occupied by a Safety Monitor when the route requires highway travel. This has been a point of criticism by Tesla Robotaxi skeptics, but it is a smart move in the name of safety, and will only be temporary.

It is simply a way to keep occupants safe and ensure the self-driving initiatives of not only Tesla, but also those of many other companies, continue to operate.

The appearance of a potential Robotaxi rig near Dallas could open the floodgates for more cities to gain access to the ride-hailing suite. There is still San Antonio and Houston, as well as some other smaller cities in Texas, for Tesla to access for its Robotaxi suite moving forward.

Tesla is offering a crazy choice on the Model 3 to help with its end-of-quarter push, but it is only available in Canada.

Tesla has been offering some pretty crazy incentives to help move vehicles in various markets, including discounts, Supercharging, and other offers.

In Canada, it is offering something pretty crazy: a $5,000 discount or Free Supercharging for life:

Tesla Canada 👀 pic.twitter.com/Gbk8D2VX5J

— Joe Taylor (@Joe_D_Taylor) September 23, 2025

This would bring the price of the two Tesla Model 3 configurations:

• Tesla Model 3 RWD – $49,990
• Tesla Model 3 LRAWD – $56,990
• Tesla Model 3 Performance – $64,990

The offer only stands if delivery is taken by September 30. The company describes the terms and conditions:

“Orders will default to $5,000 off total purchase price, deducted pre-tax. Requires you to contact Tesla to switch promotion to free Supercharging if desired. Supercharging promotion is tied to your Tesla Account and cannot be transferred to another vehicle, person or order, even in the case of ownership transfer. Used vehicles and vehicles used for commercial purposes (like taxi, rideshare and delivery services) are excluded from this promotion. You are still responsible for Supercharger fees, like idle and congestion fees, when applicable. Redeemable only at Tesla-owned Superchargers. Tesla reserves the right in its sole discretion to remove the free Supercharging from your vehicle in the event of excessive charging. “

The $5,000 discount in Canada, or the unlimited Free Supercharging, is a massive deal, as it benefits those looking for a deal or those who plan to use the car as a daily driver.

Tesla offers new deal on used inventory that you won’t want to pass up

Tesla has used a lot of different deals this quarter to help push cars out and bolster Q3 delivery figures.

• Lifetime Free Supercharging or $5,000 discount on Model 3 in Canada
• 1 Year Free Supercharging on Inventory Cybertruck, Model S, Model X in the U.S.
• 18 Months free Supercharging on Model 3 in the U.S.
• Lifetime Free Supercharging with Luxe Package on Model S and Model X in the U.S.
• Up to $2,000 off Model 3 and Model Y Inventory in the U.S.

These deals have all contributed to an increase in demand and minimal vehicle inventory in various markets.