In a stunning escalation of tensions, Elon Musk has unleashed a blistering critique against California Governor Gavin Newsom over proposed electric vehicle tax credits that could sideline Tesla, the electric vehicle titan he leads. Musk’s vehement response on X, calling Newsom’s plan “insane,” highlights the fierce political battle brewing as the Biden Administration transitions to President-elect Donald Trump.

Newsom’s controversial scheme aims to provide up to $7,500 in subsidies to electric vehicle buyers, a strategic move to counter anticipated federal cuts to EV tax credits under Trump. However, the plan’s potential exclusion of Tesla—California’s dominant player in the EV market—has ignited Musk’s ire, as he accuses Newsom of undermining the state’s most significant EV manufacturer, which produced over 550,000 cars last year and employs more than 20,000 workers.

This isn’t Musk’s first clash with Newsom. The two have a fraught history dating back to 2020 when Newsom denied Musk’s request to reopen Tesla’s Fremont factory during pandemic lockdowns. Now, with Musk appointed as co-chair of the newly established Department of Government Efficiency under Trump, he has intensified his attacks on Newsom’s policies, claiming they stifle innovation and efficiency.

Political analysts describe this as a tumultuous “love-hate relationship,” with Newsom recently attempting to position California as a counterforce to Trump’s policies. As Musk gears up for a new era of influence in the federal government, the stakes couldn’t be higher. Will Musk’s relentless pursuit of efficiency transform the landscape of California’s EV market, or will it further escalate his conflict with Newsom? As both leaders brace for a showdown, the future of electric vehicles—and the political dynamics of the state—hang in the balance.