California launches $3,500 instant rebate for first-time electric-car buyers

Governor Gavin Newsom announced the MyFirstEV program, which provides a $3,500 instant rebate for Californians buying or leasing a new zero-emission vehicle and a $1,750 rebate for used models. The scheme is financed with a $135.5 million state investment that will be matched dollar-for-dollar by participating manufacturers, creating a total pool of $271 million. California Air Resources Board chair Lauren Sanchez said the initiative expands access to cleaner transportation, reduces fuel and maintenance expenses, and improves air quality for families.

The program imposes a $50,000 MSRP limit on new cars and a $25,000 sales-price ceiling on used vehicles, though California-based manufacturers that produce only ZEVs are exempt. Critics like Wayne Winegarden of the Pacific Research Institute view the rebates as a redistribution of wealth intended to artificially boost demand after a federal tax credit lapsed in September 2025, which coincided with a drop in EV registrations. The state also disclosed that its battery storage capacity has surpassed 21,000 megawatts of solar energy, sufficient to power 15.75 million homes for four hours after dark.