Despite the slowing of US EV sales on a national level as the Trump administration undoes many of the pro-EV policies of its predecessor, California, where EV sales are significantly higher than the national average, is pushing ahead to encourage more people to make the switch to an EV. Governor Gavin Newsom has announced a new rebate program that will allow first-time electric car buyers to claim up to $3,500 off their first EV – it won’t apply to those purchasing their second EV. California has dedicated $135.5 million worth of state investment to the scheme, with a group of automakers also agreeing to match this investment – bringing the total pot available for first-time Californian EV buyers to benefit from discounts to $270 million.
The scheme will be open to both new and used EVs, with new models eligible for a $3,500 discount, so long as their MSRP doesn’t exceed $50,000. Used EVs will benefit from a $1,750 discount, but there is a price cap here of $25,000. It’s not as simple as this price cap, however – EVs from automakers which are headquartered in California will not be subject to these price-dependent discounts. This means more vehicles above $50,000 such as the Rivian R2 could qualify to be eligible for discounts from first-time buyers. Confirmation on which manufacturers will participate in the scheme is yet to be confirmed.
California is already exceeding its EV targets, with the state surpassing 2.5 million cumulative EV sales at the start of 2026 – significantly exceeding the 2025 goal of 1.5 million. Now, with this new rebate scheme coming into place, the state has the chance to push EV sales even higher.
Gavin Newsom, Governor of California, commented:
“Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter. California is putting its foot on the accelerator. With our new instant rebate program for electric vehicles, we’re making it easier for families to drive clean, breathe clean, and keep more money in their pockets. As California leads the world toward a clean future, our message is clear: no one can stop Californians from choosing vehicles that are better for their wallets and better for the air they breathe.”
