Gavin Newsom faces backlash over Hollywood tax credit reversal and Musk wealth claim

Governor Gavin Newsom asserted that California regulations "created the conditions" for Elon Musk to become a multi‑billionaire, calling the Tesla founder "one of the great disappointments of our time." A podcast panel disputed the comparison to former President Obama and questioned Newsom’s defensive stance when pressed about his unreleased tax returns.

Separately, Newsom was criticized for mistakenly canceling the expanded Hollywood tax credit he had promoted earlier. The California Film & Television Jobs Act had doubled state film incentives to $750 million annually, but the governor’s latest budget caps credits at $5 million per company, limiting studios’ ability to benefit. Critics say the move undermines California’s effort to compete with other states and countries offering larger incentives, and it adds to a pattern of governance failures cited by opponents as he eyes the 2028 presidential primary.