Newsom Jokes California Should Take Tesla Shares for Musk's 'Corporate Welfare'

Newsom Criticizes Intel Deal, Suggests Tesla Shares

In a notable remark, California Governor Gavin Newsom criticized the Trump administration's deal with Intel Corp., calling it "corporate welfare" for big businesses. Newsom jokingly suggested that California should receive shares in Tesla Inc. (TSLA) in return for the subsidies provided to Elon Musk's company.

Details

Newsom made the comments on Monday while discussing federal economic policies. He argued that the Intel deal shows double standards, as the government provides massive support to Intel while criticizing other subsidy programs. "Maybe California should get Tesla shares for all the subsidies we've given Musk," he joked.

Context

The remarks come amid a broader debate over government support for large corporations. Tesla has previously received subsidies and tax incentives from California, including tax breaks for its Fremont factory. Meanwhile, the Trump administration frequently criticizes government subsidy programs but has struck a deal with Intel.

What It Means for Investors

The comments have no immediate impact on Tesla's stock, but they reflect political tensions over government support for companies. They could affect investor sentiment regarding Tesla's regulatory environment in California, but no concrete changes are expected.