Tesla buyers deplete California's new EV rebate pool within days
California's MyFirstEV program, offering $3,500 rebates for first-time zero-emission vehicle purchases, was exhausted by Tesla customers in just a few days after its launch.
After Congress ended the federal electric-vehicle tax credit, Governor Gavin Newsom launched the MyFirstEV rebate in early August, granting $3,500 off new zero-emission vehicles or $1,750 off used ones at the point of sale. California committed $135.5 million, and participating manufacturers matched that amount, forming a $271 million incentive pool for first-time EV purchasers. Tesla customers who placed orders from August 3 to August 7 quickly consumed the automaker's allocated portion, leaving the funds depleted within days.
The rebate is limited to first-time EV buyers, does not consider household income, and applies to vehicles priced under $50,000 new or $25,000 used, though California-based manufacturers are exempt from the price cap. The state also announced a separate $95.2 million investment to expand charging and hydrogen-fueling stations. Critics argue the subsidy benefits buyers who can already afford EVs and question the need for taxpayer support now that the market is maturing.
Why it matters
It shows how quickly state EV incentives can be used up, raising questions about subsidy design and fiscal impact.
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