Tesla Exhausts California EV Rebate in Five Days
Tesla emptied its share of California’s new EV rebate in just five days. Skip to content
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Tesla Used Up Its Share in Five Days
The state of California waived its $50,000 price cap for EV-only makers headquartered there, benefiting Rivian and Lucid but not Tesla. Buyers still cleared the money, with Tesla exhausting its entire allocation of the MyFirstEV rebate between August 3 and August 8, according to a spokesperson for the California Air Resources Board (CARB).
California’s Incentive Program
The $135.5 million program split funds evenly between participating carmakers who matched the state dollar-for-dollar, resulting in approximately $271 million total—about $9 million per manufacturer or $18 million with the match included. InsideEVs estimates Tesla buyers claimed nearly the full amount.
Rebate Details
Buyers receive $3,500 off a new eligible EV or $1,750 for a used one. New cars must have a base price of $50,000 or less; used ones, $25,000 or less.
The cap exemption applies only to California-headquartered EV makers like Rivian and Lucid. Tesla, having moved its headquarters to Texas in 2021, was only eligible for its Model 3 and Model Y trims.
Governor’s Initiative
Gavin Newsom announced the MyFirstEV program as a response to what he sees as Donald Trump’s efforts "to pollute our air and surrender the clean car industry to China."
Fading Federal Incentives
The federal $7,500 tax credit expired in September 2021, prompting Ford CEO Jim Farley to warn it could cut EV demand in half. Many automakers have since scaled back their electric vehicle plans. Americans bought only 74,967 new EVs in June—a nearly 28% drop year-over-year—according to Cox Automotive data cited by Electrek.
Tesla’s Dominance in California
Despite the national trend, Tesla continues to dominate the EV market in California. During Q2 2026, it registered 45,953 vehicles in the state, a 11.8% increase year-over-year (per CNCA figures cited by Electrek). It accounted for almost 57% of all zero-emission vehicle registrations through June in California.
Competitors on the Horizon
Ford, Rivian, and Toyota are set to offer the California rebate in coming months.