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

Tesla Inc.’s electric vehicles would be shut out from consumer rebates under a proposal by California Governor Gavin Newsom, pitting the prospective Democratic presidential hopeful against Republican power player Elon Musk.

Now California is pitting itself against Washington, D.C.The brewing battle makes investing in Tesla—and all the other car stocks—more difficult heading into 2025.Tesla stock took it on the chin Monday,