California has rolled out a new initiative intended to boost first-time electric vehicle (EV) purchases by offering attractive rebates. Governor Gavin Newsom shared the news on Friday, emphasizing the program’s role in compensating for the federal EV incentives that were discontinued last year.
The initiative, named “My First EV”, aims to make EVs more affordable for first-time buyers. Those purchasing a new electric vehicle priced below $50,000 will benefit from a $3,500 rebate. Similarly, buyers of used electric vehicles costing under $25,000 can avail a $1,750 rebate, provided the purchase is made through manufacturers’ certified pre-owned programs.
Rebates are applied directly at the point of sale, reducing the vehicle’s purchase price instantly. The state program covers half of the rebate, while 13 participating automakers match the remaining amount. Tesla, Hyundai, and Lucid are the first to implement the program, with their rebates effective immediately.
Additional automakers such as Ford, Chevrolet, Rivian, and Kia are set to join by the end of August, followed by Toyota, Lexus, Honda, and Subaru in September. Mitsubishi will partake in November, though Nissan and Volvo have yet to announce their participation.
Governor Newsom stated, “While Donald Trump is hellbent on burning more expensive fossil fuels and raising costs for Americans, California is proving there’s a better way. California is showing the world what real economic security looks like. It’s one that can’t be held hostage by foreign conflicts and Big Oil. The Golden State is leading the charge on building a reliable, affordable clean future.”
Transportation is a significant contributor to air pollution in California, responsible for 60% of the state’s smog and 40% of its greenhouse gas emissions. Despite stringent pollution controls over the last five decades, regions like the Central Valley and Los Angeles still struggle with air quality issues due to their geographical and climatic conditions.
The California Air Resources Board, tasked with overseeing the new rebate program, anticipates that the $135 million allocated, alongside automakers’ contributions, will accommodate approximately 73,000 vehicle sales.
EVs have faced challenges following changes at the federal level, notably the removal of tax credits by President Trump and Congress. These credits previously allowed up to $7,500 for new EVs and $4,000 for used ones, and their absence has impacted EV sales.
Trump also negated California’s pioneering regulations to halt new gasoline-powered vehicle sales by 2035, initiated by Newsom in 2020. This move prompted a lawsuit from California, which remains unresolved.
During a White House event, Trump remarked on rescinding California’s mandate, stating, “We officially rescue the U.S. auto industry from destruction by terminating the California electric vehicle mandate once and for all.”
California remains the leading state for electric vehicles, with significant growth in EV adoption since 2012. At that time, about 30,000 EVs were on the road, a number that has surged to 2.7 million, surpassing former Governor Jerry Brown’s target of 1.5 million by 2025. The Tesla Model Y stands out as the best-selling car model in the state.
Technological advancements have bolstered EVs, with many models now offering over 300 miles of range on a full charge. Consequently, EVs represented 22.9% of new car sales in California by the end of 2025. Santa Clara County led with 41.1% of new vehicle sales being electric that year.
Sales dipped following the federal incentive cut, but the rising oil prices, partly due to geopolitical tensions, have rekindled interest in EVs. In the second quarter of this year, EVs accounted for 19.5% of new car sales in California.
Despite these efforts, opposition to Newsom’s plan to phase out all new gasoline-powered vehicles by 2035 remains high, with 66% of adults and 65% of likely voters expressing disapproval, according to a survey by the Public Policy Institute of California. Xavier Becerra, a Democratic candidate for governor, has indicated potential revisions to this policy if elected.
Governor Newsom was set to reveal further details about the EV rebate program during a press event in Alameda County on Friday.
Original Story at www.mercurynews.com