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Newsom Rebukes Musk for 'Ceding' EV Market to China

The governor casts Tesla’s robotics pivot alongside federal incentive rollbacks as a risk to U.S. electric-car leadership.

Overview

  • Newsom, in an Axios interview Wednesday, called Elon Musk “one of the great disappointments” and accused him of giving up ground to China in electric cars.
  • He said China controls about 70% of the global EV market and warned that losing share also means losing supply chains and leverage over the auto industry.
  • He argued Tesla has slowed its EV push by shifting focus to robotics, while noting California’s rules and R&D tax credits helped the company grow and still support it.
  • He linked the trend to policy, pointing to the Trump administration’s end of the $7,500 federal EV credit last October, after which a Cox Automotive report found new EV sales fell 26.8% year over year.
  • Industry tallies reported BYD delivered about 2.26 million EVs in 2025 versus Tesla’s 1.64 million, a backdrop Newsom cited in warning that U.S. automakers could fall further behind.