California Launches MyFirstEV Rebates After Federal Tax Credit Cuts

Governor Gavin Newsom launched the MyFirstEV program to provide instant rebates to first-time buyers or lessees of zero-emission vehicles. The initiative offers a $3,500 discount for new electric vehicles priced under $50,000 and a $1,750 discount for used vehicles under $25,000. Price limits are waived for automakers headquartered in California, such as Rivian and Lucid. The program is managed by the California Air Resources Board and allows discounts to be applied at the point of sale.

Newsom introduced the measure following the elimination of federal EV tax credits under President Donald Trump's "One Big Beautiful Bill." The governor views the rebates as a tool to maintain California's dominance in the green growth sector and meet a state mandate requiring all new cars sold in the state to be zero-emission or hybrid by 2035. Funding for the program is split between the state budget and participating automakers.

Demand for the rebates was immediate, with Tesla depleting its entire allocation of funding within five days of the August 3 launch. Tesla buyers utilized approximately $18 million in combined state and company funding by August 8. This surge in California occurs despite a broader national downturn in electric vehicle sales, though Tesla registrations in the state rose 11.8% year over year in the second quarter.