Governor Gavin Newsom is promising to continue the electric vehicle rebate program in California, but his new proposal could exclude Tesla through a market share cap.

Leaving out Tesla could be a savings for the state. Though Musk has advocated for continued state support, he has also said the company doesn’t need EV rebates. Eliminating the federal $7500 tax credits ”probably actually helps” Tesla in the long term by hurting its competitors, Musk mused in July.

Excluding Tesla could burnish Newsom’s standing on the left as he renews a clash with Musk, who has become a member of Trump’s inner circle and accepted a role helping the incoming administration