California’s EV rebate program favors Tesla
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In California, nearly 12,000 residents have purchased electric vehicles with help from a new state rebate program launched in August.
The program has a total volume of approximately 232 million euros, with the state and participating automakers each contributing around 116.5 million euros. Buyers receive about 3,000 euros for new vehicles costing up to 43,000 euros, and around 1,500 euros for used electric cars under 21,500 euros.
Tesla leads in benefiting from this initiative, accounting for 5,658 of the supported vehicles, close to half of all new EVs purchased through the program. Hyundai, Toyota, and General Motors follow with 1,700, nearly 1,400, and 1,100 electric cars respectively, though Tesla’s funding is now depleted. Nissan and Mitsubishi Motors recently joined the program, alongside Ford, Honda, Kia, Lucid, Rivian, Subaru, Volvo, and Lexus. Despite the program’s success, California’s overall electric vehicle sales have decreased.
The share of EV sales among all vehicle sales in California dropped from 25 percent in 2024 to 18 percent by the end of September. This decline coincides with the end of federal incentives for electric vehicles under the administration of President Donald Trump, who signed legislation in 2025 eliminating tax credits for both new and used EVs. California is currently challenging federal actions that reversed its regulations aiming to end the sale of new gasoline cars by 2035.
