California reserved $165 million for Tesla to electrify its trucking industry. The result may stifle EV innovation.

In the past year, the California Air Resources Board (CARB) and its nonprofit partner CALSTART have set aside nearly 1,000 vouchers, worth at least $165 million, to provide commercial fleets with steep markdowns on the long-delayed Tesla Semi, according to state data obtained by The Times. The battery-powered big rig has been advertised as a groundbreaking freight truck capable of traveling up to 500 miles on a single charge.

But the news of Tesla’s windfall outraged some in the trucking industry, who allege the state provided the world’s wealthiest automaker with preferential treatment for a vehicle that is not ready.
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Even if Tesla fails to deliver the trucks and doesn’t eventually receive government incentives, it prevents other automakers — with EVs in stock — from utilizing the funding more immediately. Losing out on these funding opportunities could be critical for some smaller EV companies.

“That hurts the rest of us,” said Peter Tawil, director of sales and marketing at RIZON and longtime promoter for the EV industry. “Our trucks can be delivered tomorrow.”

https://www.latimes.com/environment/story/2026-02-09/tesla-semi-california-truck-funding