New California regulation could deny Tesla buyers access to Clean Vehicle Rebate

New California regulation could deny Tesla buyers access to Clean Vehicle Rebate

Tesla buyers in California may lose access to the state’s Clean Vehicle Rebate, due to a new regulation which is currently under consideration by the Labor and Workforce Development Agency and the California Air Resources Board (CARB).

The Clean Vehicle Rebate in California is an incentive for electric vehicle (EV) buyers in the state. The incentive involves a rebate of $2,500 on the purchase of EVs, which are presently being mass-produced by only one California automaker ---Tesla Motors.

The under-consideration regulation will essentially be tied to new labor regulations for automakers that manufacture EVs in California. In other words, the regulation would tie the rebates offered by the CARB to new standards for a “fair and responsible workplace.”

The new regulation is being supported by the Union of Auto Workers (UAW), which already has efforts underway to unionize Tesla’s EV manufacturing facility in Fremont.

Tesla is fighting the new regulation in California, by describing it as “a tool to influence the UAW’s organizing effort at Tesla’s Fremont factory,” and by asserting that it “is not just an equitable problem, it is a legal one.”

According to Tesla, a state has the ability to legally mandate that manufacturers should meet “generally applicable labor standards,” but “it cannot target a single manufacturer under the guise of creating such a labor standard.”