Since one of the many environmental programs Trump killed was the $7,500 EV tax credit, California decided to spin up its own rebate. First-time electric vehicle buyers in the Golden State will get $3,500 off a new EV with an MSRP up to $50,000, and those who are buying a used EV for $25,000 or less can get $1,750. We’ve previously reported on this, but the bill was officially signed into law by Governor Gavin Newsom on Monday.
$50,000 can be a bit tight in the EV world, which is why it’s pretty good news that California-based companies like Lucid and Rivian are exempt from the 50-grand cost cap. It’s not clear if Tesla will get the same sort of benefits, since it started in California and still builds some of its vehicles there, but its official company headquarters is technically in Austin, Texas. From Car and Driver:
Of course, that’s if Tesla and other automakers play ball. The law restricts these deals to cars from “participating automakers,” which are currently unknown. The California Air Resources Board (CARB) says it hopes to release the list of participating automakers next month, and the point-of-sale discount is supposed to go into effect later this summer.
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If GM signs on, the highly affordable Chevy Bolt could cost as little as $25,495. Should Nissan participate, the Leaf would come in at just over $28,000. That’s typically where the sub-$35K list ends, but the new law could bring cars from Tesla, Ford, Subaru, and Toyota into the mix for Californians.
The $3500 discount probably won’t be more than a drop in the bucket when paying for a Lucid Air Sapphire, but the brand’s fans could be able to get their hands on the least expensive model—an Air Pure—for just $68,900, which is down from its $72,400 initial ask. And for buyers looking for other EVs that cost $50,000 or less, this might be the motivation they need to transition into the lifestyle at a more affordable rate.
The California bill states that the discount will be applied to the vehicle price at the dealer, meaning there’s no extra paperwork or rebate instructions to get the deal. While there’s not yet an official timeline for when the discounts will take effect, Newsom’s office says we can expect to see them roll out later this summer.
The state has set aside $135.5 million for the program from its 2026-2027 budget. Participating car companies are matching the investment to create a pool of $270 million for first-time EV buyers. While it’s not quite as good a deal as the $7,500 federal tax credit, it’s certainly a big help to folks looking to get behind the wheel of an EV.
