Tesla depleted its portion of California's new electric vehicle rebate in just five days.
Tesla depleted its allocation of California's MyFirstEV rebate between August 3 and August 8. While the $50,000 price limit is lifted for California-based EV-only manufacturers such as Rivian and Lucid, it does not apply to Tesla. The company utilized its complete share of California's newly introduced first-time buyer rebate within five days. The MyFirstEV program commenced this month, and Tesla began providing the rebate on August 3, with its portion fully utilized by August 8, as confirmed by a spokesperson from the California Air Resources Board to InsideEVs.
The funding is not a single pool. California allocated $135.5 million and divided it among participating automakers, all of which agreed to match the state's contribution, bringing the total to approximately $271 million. This averages to around $9 million in public funds per manufacturer, or $18 million considering the match, with InsideEVs estimating that Tesla buyers claimed nearly the entire amount.
Eligible buyers receive $3,500 off the purchase of a qualifying new EV or $1,750 off a used one. New vehicles must have a base price of $50,000 or less, while used vehicles must be priced at $25,000 or lower.
This price cap does not uniformly apply; it is waived for EV-only manufacturers based in California, which includes Rivian and Lucid. However, Tesla relocated its headquarters to Texas in 2021, meaning that only its more affordable Model 3 and Model Y trims qualified for the rebate.
The program serves as California's response to federal actions. "Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter," remarked Governor Gavin Newsom during its announcement. Meanwhile, Chinese manufacturers are marketing vehicles such as a $15,300 electric SUV across 35 countries.
The federal $7,500 tax credit lapsed in September of last year. At that time, Ford CEO Jim Farley cautioned that this shift could lead to a 50% reduction in EV demand. Since then, several automakers have scaled back their plans, resulting in American consumers having a dozen fewer models available compared to a year ago.
The broader outlook is grim. According to Cox Automotive, Americans purchased 74,967 new EVs in June, reflecting a nearly 28% year-on-year decline. Electric vehicles accounted for 5.4% of all new vehicle sales for that month.
California represents an exception to this trend, and within it, Tesla stands out. The company registered 45,953 vehicles in the state during the second quarter, marking an 11.8% increase compared to the previous year, based on California New Car Dealers Association data cited by Electrek. Tesla achieved a market share of 56.7% of all zero-emission vehicles registered in California through June.
This situation contrasts sharply with Tesla's performance in Europe, where sales have been plummeting. Ford, Rivian, and Toyota are anticipated to begin participating in the California rebate program in the upcoming months. Tesla and CARB did not respond to requests for comments from Gizmodo.
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Tesla depleted its portion of California's new electric vehicle rebate in just five days.
Tesla depleted its allocation of California's new MyFirstEV rebate within five days, even though a price cap applies that excludes Rivian and Lucid but not Tesla.