SACRAMENTO – In a move that could reshape the landscape of electric vehicle ownership in California, Governor Gavin Newsom has unveiled a comprehensive proposal to boost zero-emission vehicle (ZEV) sales. This initiative, which includes a dollar-for-dollar match from automakers, aims to provide substantial point-of-sale incentives for first-time ZEV buyers, covering both new and used vehicles.
California’s push for clean transportation has already seen the state exceed its previous goal of 1.5 million ZEV sales, with a remarkable 2.5 million vehicles sold. The fourth quarter of 2025 alone witnessed 79,066 new ZEV purchases, making up 18.9% of all new car sales, even after federal tax credits expired at the end of September.
Support for this proposal is robust among clean energy advocates, auto industry leaders, and environmental groups. They see it as a vital step in countering federal rollbacks and securing California’s future in clean transportation.
Reactions from Key Stakeholders
Mike Murphy, CEO of the American EV Jobs Alliance: “Governor Newsom’s smart and practical plan is a real win for American EV jobs, cleaner air, and American automotive manufacturing competitiveness as we face the new reality of China writing a blank check to totally dominate the world’s auto industry. As America’s clear leader in electric vehicles, California is vital to America’s EV manufacturing future. Ford, Lucid, Honda, Rivian, GM, Hyundai, Tesla, Kia, Toyota, and many other automotive manufacturers and suppliers have important design, engineering, and manufacturing facilities here. Governor Newsom’s plan helps new EV drivers switch to cleaner, more efficient e-powertrains that offer better performance, clean emissions, and the happy consumer experience of never needing to use a gas pump again. Governor Newsom understands the stakes for American autoworkers are very high: if auto manufacturers do not get the support they need to successfully compete in EVs, the future of more than a million good-paying U.S. jobs is at risk. Newsom’s plan is a frugal yet high-impact strategy to help America compete in EVs.”
Brian Maas, President, California New Car Dealers Association: “CNCDA applauds the Newsom Administration’s proposal for additional consumer-focused EV incentives to address new EV affordability. We look forward to working with all stakeholders to ensure the proposed credit is directly applied at the point-of-sale and is easily understood by consumers and dealers alike.”
Josh D. Boone, Executive Director of Veloz: “California’s approach to evolving EV rebates reflects an ongoing commitment to electrification at scale, starting with the largest vehicle market in the U.S. As the policy landscape continues to shift, what matters most is momentum. Momentum is built through leadership, coordination, and clarity for consumers. Incentives play an important role, and so does trusted education that helps people understand their options and feel confident moving forward. The EV transition is well underway. The work now is about widening access, reinforcing confidence, and keeping progress durable, market by market and state by state, together.”
Matt Petersen, CEO of Los Angeles Cleantech Incubator: “Governor Newsom’s proposed passenger EV purchase incentive sends a strong market signal to automakers and entrepreneurs alike that California remains committed to growing the clean transportation economy. By leveraging public investment to unlock private capital and support EV market adoption, this proposal will provide critical market certainty to help scale innovation, attract manufacturing and infrastructure investment, and continue improving air quality.”
Michael Berube, CEO and President of CALSTART: “Governor Newsom’s proposal is a step in the right direction to build confidence in the light-duty market and to help consumers and businesses transition to EVs. We look forward to working with the administration to further support all segments of the transportation system, including medium and heavy-duty trucks and innovative mobility options for consumers that cannot afford a vehicle.”
John Bozzella, Alliance for Automotive Innovation: “At this stage of the transition and given current market conditions, consumer incentives can lead to more EV adoption and affordability in California – and support the automotive and battery industrial base across the country.”
Peter Zalzal, Distinguished Counsel & Associate Vice President, Clean Air Strategies, Environmental Defense Fund: “The Governor’s leadership to provide point-of-sale rebates for new and used electric vehicles will have enormous benefits for Californians. This can-do proposal will make clean cars more affordable, saving families money, cutting harmful pollution, spurring innovation, and supporting the global competitiveness of our auto industry. EDF remains eager to work with all stakeholders to support, build on, and expand this momentum and turn this vision into reality.”
Daniel Barad, Western States Policy Manager, Union of Concerned Scientists: “At a moment of escalating federal attacks and rollbacks, Governor Newsom’s leadership on zero-emission vehicle funding is both essential and timely. Continued investment in clean cars is critical to protecting public health, reducing global warming emissions, and ensuring all Californians can breathe clean air. The Governor’s proposal is a crucial bridge to a zero-emission transportation future and will help prevent California from falling behind the rest of the world, which is moving full speed ahead on this transition. We stand ready to work with the Governor and Legislature to maximize the public and environmental benefits of these investments.”
Tim Carmichael, President, Coalition for Clean Air: “We applaud Gov Newsom for challenging the automakers to match California’s proposed point-of-sale rebates for new and used zero-emission vehicles. We look forward to working with the administration and the legislature to target those incentives toward the low and moderate income drivers who face the steepest hurdles to obtaining the cleanest cars. We will also continue to seek funding for the Clean Cars 4 All program and for zero-emission buses and trucks.”
Victoria Rome, Natural Resources Defense Council, Senior Director of California Government Affairs: Governor Newsom made clear that California will move forward forcefully with our clean energy and climate progress. As the fourth-largest economy in the world, California has an opportunity and an obligation to continue leading, especially as the federal government tries to take us back to the days of smog-filled skies. The governor’s proposed budget would backstop the loss of federal incentives so that more Californians can purchase a clean vehicle. This is a strong signal in a tight budget year.”
California Electric Transportation Coalition: “Gov. Newsom’s proposed EV incentive program is simple, accessible, focused on first-time buyers, and includes used vehicles. $200M is a start, but more funding is needed.”
Original Story at www.gov.ca.gov