A state program allocates $135 million for incentives, with participating automakers like Tesla and Hyundai matching the funds.
Gov. Gavin Newsom (right) announces new savings for California car buyers, a major milestone in the state’s clean energy future, at the Bridge Yard Facility in Oakland, California, on Aug. 7, 2026. Gov. Gavin Newsom announced new savings for California car shoppers in Alameda County on Aug. 7, 2026. (Tayfun Coskun/Anadolu via Getty Images)
Electric vehicle curious Californians can now receive an instant $3,500 rebate when they purchase their first EV through a new state program.
Gov. Gavin Newsom announced Friday that $135.5 million is available for “MyFirstEV,” enough to pay for about 73,000 new zero-emission vehicles.
These rebates come after President Donald Trump ended federal tax credits for a number of clean energy technologies including a $7,500 tax credit for new EVs and a $4,000 tax credit for used EVs. Trump also attempted to block the state’s EV sales mandate and its diesel engine rules, though California is currently fighting these challenges in court.
A Tesla charging at a station in Sacramento, on July 29, 2022.
Despite federal headwinds, California is pushing forward with its own incentives to protect public health, reduce the greenhouse gas emissions and, according to Gov. Gavin Newsom, support California-based companies and reduce dependence on petrol states — a nod to the impacts the war in Iran had on fuel prices across the country.
“We’re past the debate,” Newsom said Friday in Alameda County, at a press conference where he called gasoline an inferior product.
Newsom also said that this purchase credit is about giving consumers a choice. In July, the California Energy Commission reported that EVs currently represent 19% of new car sales — a 3% increase just this year.