Updated

Updated · Not a Tesla App · Jul 13

Newsom Signs SB 168 for $3,500 California EV Rebates as State Commits $600 Million

Updated

Updated · Not a Tesla App · Jul 13

Newsom Signs SB 168 for $3,500 California EV Rebates as State Commits $600 Million

Q: Why does California's new EV rebate reward corporate HQs over local manufacturing jobs?

California’s new EV rebate favors corporate headquarters because SB 168 ties its main exception to where an EV-only company is based, not where it builds cars. Under MyFirstEV, most new EVs qualify only if they cost $50,000 or less. But the law waives that cap for EV-only automakers headquartered in California as of Jan. 1, 2026. That means higher-priced vehicles from Rivian and Lucid can still receive the full $3,500 rebate, even though Rivian assembles vehicles in Illinois and Lucid in Arizona. By contrast, Tesla still manufactures large volumes of vehicles in Fremont and supports thousands of California jobs, but it moved its headquarters to Texas in 2021. As a result, Tesla does not get the exemption; only its models priced under $50,000 qualify. The practical effect is that the policy rewards corporate domicile and executive presence rather than in-state assembly work. Critics say that is hard to justify if the goal is to support California manufacturing jobs, because the carve-out benefits companies with California offices but out-of-state factories while limiting a company with a major California plant. Supporters’ likely rationale is that the state wants to keep high-value corporate functions such as management, engineering, and product development in California, and to help homegrown EV brands during a sales slowdown after the federal tax credit ended. But as written, the law clearly prioritizes headquarters location over manufacturing footprint.

3 articles · Updated · Not a Tesla App · Jul 13

$3,500 instant rebates for first-time California zero-emission vehicle buyers will begin later this summer under SB 168, which Newsom signed to cut the upfront price at dealerships.
$135.5 million in state funding backs the MyFirstEV program and will be matched by participating automakers; used EV buyers can get $1,750 off vehicles priced up to $25,000, while new EVs must be under $50,000 MSRP.
$600 million in the 2026-27 budget wraps the rebate into a broader clean-transport package that also funds truck and bus vouchers, engine replacements, lower-income car aid and community air projects.
2.5 million cumulative zero-emission vehicle sales and more than 200,000 public and shared chargers underscore California's push to sustain EV adoption after Republicans repealed the federal EV tax credit.

Sources

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Not a Tesla App5h ago

California Governor Newsom Signs SB 168, Creating MyFirstEV Program with $3,500 Rebate for First-Time EV Buyers

Office of Governor Gavin Newsom1d ago

As Trump cedes global clean car race to China, Governor Newsom fights back with instant ZEV rebates for first-time buyers | Governor of California

Ars Technica4h ago

California creates $3,500 rebate for new electric vehicle buyers - Ars Technica

10 Sources

As California offers EV rebates, will new federal fees stall the state's electric transition?

Why does California's new EV rebate reward corporate HQs over local manufacturing jobs?

California’s $600 Million MyFirstEV Program: New $3,500 Rebates Aim to Rescue EV Market After Federal Cuts

Overview

California has launched the MyFirstEV instant rebate program as part of a $600 million investment to make electric vehicles more affordable and support clean transportation. Funded by Cap-and-Invest revenue and smog-abatement fees, the program offers $3,500 off new EVs (up to $50,000 MSRP) and $1,750 off used EVs (up to $25,000), with the rebate applied instantly at purchase. Governor Newsom highlighted that MyFirstEV is designed to help families drive clean and save money, reinforcing California’s leadership in the clean energy transition and making EVs more accessible for residents.

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