California will offer $3,500 Electric Vehicle (EV) Rebates to first-time buyers later this summer after Governor Gavin Newsom signed new legislation aimed at supporting electric vehicle adoption.
The new program will provide rebates for California residents purchasing new electric vehicles with a manufacturer’s suggested retail price of up to $50,000. Buyers of used electric vehicles priced up to $25,000 will qualify for a separate $1,750 rebate.
The $270 million program will be funded through California’s state budget and participating automakers.
The announcement comes after the federal government ended the $7,500 electric vehicle tax credit and the $4,000 used EV credit, a move that Reuters reported has contributed to slower U.S. EV sales.
Governor Gavin Newsom criticized the federal policy. “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,” Newsom said.
The White House did not immediately comment.
Tesla and California EV Market
California remains the largest electric vehicle market in the United States.
Electric vehicles represented about 20% of all new vehicle sales in the state last year, with Tesla accounting for nearly half of those sales.
State officials have not yet identified which automakers will participate in the rebate program. The California Air Resources Board (CARB) said participating manufacturers are expected to be announced next month.
Electric Vehicle Incentives Continue
California’s previous rebate program ended in 2023 after distributing $1.49 billion to support 586,000 electric vehicle purchases over ten years.
According to the International Energy Agency, one in four new vehicles sold globally during 2025 was an electric vehicle. In comparison, EVs represented 7.8% of U.S. vehicle sales last year, down from 8.1% in 2024.
The latest rebate program comes as California continues legal action over the reversal of its rules that seek to phase out new gasoline-powered vehicles by 2035.
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