California Restores $3,500 EV Rebates With $135 Million as Used Sales Jump 20%

Q: With Tesla excluded from a key perk, which California EV makers now have a new market advantage?

Rivian and Lucid are the clearest beneficiaries, with Fisker also potentially advantaged if its vehicles are included. California’s new EV rebate gives most first-time buyers up to $3,500 off a new EV, but normally only for vehicles priced under $50,000. The key exception is for California-headquartered zero-emission vehicle companies whose executive management and staff were based in California as of Jan. 1, 2026. Their new EVs can qualify without any price cap. That creates a meaningful edge for Rivian and Lucid because many of their models are priced well above $50,000. Lucid’s Air and Gravity, for example, would still be eligible under the exemption. Rivian’s higher-priced vehicles also stand to benefit. Tesla is excluded from that special no-price-cap treatment because it moved its headquarters to Texas, even though some lower-priced Tesla models may still qualify under the standard rebate rules if they come in under the general cap. Fisker, identified in the supporting material as Los Angeles-headquartered, could also gain if its vehicles meet the program’s final eligibility terms. But based on the reporting, Rivian and Lucid are the main California EV makers now positioned with a new market advantage.

3 articles · Updated · Los Angeles Times · Jul 8

$135 million in California budget funding will revive EV incentives in coming weeks, giving eligible buyers an instant $3,500 discount on new EVs and $1,750 on used ones.
The rebates target first-time EV buyers only and replace expired federal tax credits with point-of-sale discounts, effectively returning about 4% to 7% of a vehicle's price.
Used EVs are a key focus as high California gas prices keep cost-conscious drivers shopping pre-owned models; Cox Automotive said used-EV sales rose more than 20% year over year in the first quarter.
The state is trying to steady an EV market hit after federal incentives lapsed and new-EV demand cooled, while cheaper models such as Slate Auto's sub-$25,000 pickup are due later this year.