California EV Rebate Law Favours Rivian, Lucid Over Tesla

Governor Gavin Newsom signed Senate Bill 168 on July 13, 2026, creating the MyFirstEV program that gives first‑time electric‑vehicle buyers an instant point‑of‑sale rebate of $3,500 on new EVs priced up to $50,000 and $1,750 on used EVs up to $25,000. The rebate is funded by $135.5 million in state money matched dollar‑for‑dollar by participating automakers, for a total pool of roughly $270 million, and is part of a broader $600 million zero‑emission‑vehicle package.

A distinctive feature of the law is a headquarters‑based exemption: the $50,000 price cap is waived for EV‑only manufacturers headquartered in California. This allows Rivian (Irvine) and Lucid (Bay Area) to qualify for the full rebate on models priced around $58,000 and $71,000, respectively. Tesla, whose corporate headquarters moved to Texas in 2021, does not receive the exemption and only its sub‑$50,000 models qualify.

The program aims to boost clean‑vehicle adoption after the federal EV tax credit was repealed, and to support California’s air‑quality goals while giving a competitive edge to locally headquartered manufacturers.