Tesla depleted its portion of California's new electric vehicle rebate within five days.
Tesla depleted its share of California’s MyFirstEV rebate between August 3 and August 8. While the $50,000 price cap is exempt for California-based EV manufacturers like Rivian and Lucid, it does not apply to Tesla. According to a spokesperson for the California Air Resources Board, Tesla utilized its entire portion of the new first-time buyer rebate within five days after the MyFirstEV program launched this month, beginning on August 3, and was fully claimed by August 8, as reported by InsideEVs.
The funding for the program is not centralized. California allocated $135.5 million, dividing it among participating manufacturers, each of which agreed to match the state's contribution dollar for dollar, amounting to approximately $271 million in total. This equates to around $9 million of public funding per manufacturer or $18 million when the matching funds are included, with InsideEVs estimating that Tesla buyers claimed nearly the total amount.
Eligible buyers receive $3,500 off the purchase of a qualifying new EV or $1,750 for a used vehicle. New cars must have a base price of $50,000 or less, while used vehicles must be priced at $25,000 or under.
However, this cap does not apply uniformly. It is waived for electric-only manufacturers based in California, which includes Rivian and Lucid. Since Tesla relocated its headquarters to Texas in 2021, only its more affordable Model 3 and Model Y variants qualified.
The initiative is California’s response to federal policies. Governor Gavin Newsom remarked at its announcement that “Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter.” Meanwhile, Chinese manufacturers are marketing vehicles like a $15,300 electric SUV in 35 countries.
The federal $7,500 tax credit lapsed in September of last year. Ford's CEO Jim Farley warned that this loss could halve EV demand. Consequently, several manufacturers have reduced their plans, leaving American consumers with a dozen fewer models than a year prior.
The overall outlook is concerning. According to Cox Automotive, Americans purchased 74,967 new EVs in June, marking a nearly 28% decline year over year. Electric vehicles constituted 5.4% of all new vehicle sales during that month.
California stands out, and Tesla is a notable exception within the state. During the second quarter, Tesla registered 45,953 vehicles in California, reflecting an 11.8% increase compared to the previous year, based on figures from the California New Car Dealers Association cited by Electrek. The company accounted for 56.7% of all zero-emission vehicles registered in California through June.
In contrast, Tesla's sales in Europe have been declining. Ford, Rivian, and Toyota are anticipated to begin participating in the California rebate program in the coming months. Neither Tesla nor CARB responded to Gizmodo’s requests for comment.
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Tesla depleted its portion of California's new electric vehicle rebate within five days.
Tesla depleted its allocation of California's new MyFirstEV rebate within five days, even though a price limit that excludes Rivian and Lucid does not apply to Tesla.