Former Tesla Executive: California Governor Newsom "Bent Over Backwards" to Help Tesla Despite Musk’s Criticisms
Former Tesla Inc. (TSLA) executive Rohan Patel revealed on Wednesday that California Governor Gavin Newsom and his administration have actively supported the electric vehicle giant, despite CEO Elon Musk’s frequent criticisms of the governor and his policies. Patel, who served as Tesla’s vice president of global public policy and business development until April 2024, took to Twitter to clarify the relationship between the company and the Newsom administration, emphasizing the governor’s personal support for Tesla products, including owning a Tesla Roadster and a Model S.
Key Takeaways:
- Newsom and his team have been actively supportive of Tesla, even amidst Musk’s public criticisms.
- Patel notes that Newsom’s leadership has consistently supported Tesla and actively helped the company whenever it requested assistance.
- Despite Musk’s political disagreements, state officials have continued to work professionally with Tesla.
- Patel’s statement comes in response to a claim by a Tesla enthusiast that Democrats dislike Tesla due to its increasing competition in the EV market.
- The Newsom administration has praised Tesla’s competitor Rivian for its success in California’s rapidly growing EV market.
Supporting Tesla’s Growth Amidst Political Tensions
Patel’s statements provide insight into the complex relationship between Tesla and the California government. Despite Musk’s frequent public criticisms of Newsom and other Democratic policymakers, Patel emphasizes that the California government has remained committed to supporting Tesla’s growth. This suggests that the governor’s individual political preferences do not necessarily influence the state’s policies regarding Tesla’s operations.
"Newsom (Roadster and Model S owner with Tesla solar/powerwalls) and his team bent over backwards to help Tesla," wrote Patel on Twitter. "We didn’t always agree with every action, but his top leadership always was willing to help whenever we asked."
A Shift in California’s EV Landscape
While Tesla has been a driving force in the California EV market, the state’s EV landscape is becoming increasingly diverse. The rise of competitors like Rivian, which has seen a nearly 77% increase in new registrations in California during the first half of 2024, has led to a more competitive market.
This shift in the market has been welcomed by the Newsom administration. "I want to applaud and thank the extraordinary work that Rivian has done," Newsom said on Tuesday. "Tesla is not the exclusive manufacturer any longer in this space. You’re seeing a dramatic shift in competition across the sector. This is exactly what was predicted. This is exactly what we have been promoting: competition in the space."
The data supports this shift. While Tesla’s Model Y SUV remains the best-selling EV in California, its overall new registrations have decreased by 17% in the first half of 2024.
Beyond California: Tesla’s Relationship with the Biden Administration
Patel’s comments about California’s support for Tesla align with his previous statements regarding the Biden Administration. In July 2024, Patel stated that the Biden administration “treated EV giant fairly” on certain issues, despite “surface-level disappointment” between President Biden and Musk.
Patel acknowledged Biden’s pro-union stance and its impact on policy decisions, but he ultimately noted that "[it] didn’t often create substantive problems, and instead was more of a PR and surface-level disappointment."
A Complex Interplay of Politics and Business
The relationship between Tesla, its leadership, and various political entities underscores the complex interplay of business interests and political ideologies. Despite public disagreements and tensions, state and federal governments seem committed to supporting Tesla’s broader contribution to the EV market and, by extension, the transition towards cleaner energy.
As the EV market continues to evolve and competition intensifies, Tesla’s success will depend not only on its innovative products but also on its ability to navigate the political landscape and maintain strong relationships with key stakeholders, including government officials. Only time will tell how Tesla will continue to navigate this complex landscape in the years to come.
