**Analyst Warns of Potential Clash Between Newsom and Tesla Over EV Incentives**

Recent comments from Wedbush analyst Dan Ives indicate a growing conflict between California Governor Gavin Newsom and Tesla as Newsom announced plans to create a state-specific electric vehicle (EV) incentive program. The proposal, which comes with a caveat that Tesla vehicles would be excluded, was described by Tesla CEO Elon Musk as "insane."

Dan Ives, who has reiterated his "outperform" rating and a $400 per share price target for Tesla stock, suggested that this move could lead to a significant face-off between Newsom and Musk. Ives coined it as a potential "Game of Thrones" battle, pointing out that such an exclusionary policy could have political and economic repercussions in California, where Tesla remains the sole car manufacturer and a major employer.

Newsom's proposed incentives aim to boost competition and innovation in the EV market. This exclusionary clause, however, may risk the state's relationship with Tesla. The stakes are high given Tesla's prominence in California: it produced the majority of EVs sold in the state and remains one of its largest employers.

According to Ives, the decision could backfire on Newsom, recalling past tensions between the governor and Musk. These include conflicts during the 2020 COVID-19 shutdowns and Tesla's subsequent move of its headquarters from California to Texas in 2021. The construction of the Austin Gigafactory further signifies Tesla’s shifting focus.

The analyst cautioned that if Newsom follows through with excluding Tesla from state EV incentives, Musk might accelerate the relocation of jobs from the Fremont facility to Austin, potentially diminishing California’s economic standing in the EV market. This ongoing dispute highlights the delicate balance of political maneuvering and corporate interests within the burgeoning EV industry.