California’s new $3,500 EV rebate favors Rivian and Lucid over Tesla

California just created a new EV rebate called MyFirstEV, offering $3,500 off a new electric vehicle priced up to $50,000, or $1,750 off a used one priced up to $25,000. It's a point-of-sale discount, meaning the money comes off the price right at the dealership rather than requiring an application later. It's open to California residents buying their first EV, with no income limit, though the vehicle has to be under the weight limit for passenger cars. The program is expected to launch in the coming weeks, with full details coming next month.

There's a catch worth knowing about if you're cross-shopping brands. The $50,000 price cap is waived for EVs made by California-headquartered, EV-only automakers, which in practice means Rivian and Lucid, even though their cheapest models cost far more than $50,000. Tesla doesn't get that exemption because it moved its headquarters to Texas, so only its lower-priced Model 3 and Model Y trims qualify, and the Cybertruck doesn't. Plenty of other mainstream EVs fall under the cap without needing any exemption, including Chevy's Blazer EV, Equinox EV, and Bolt, Toyota's bZ and C-HR, Hyundai's Ioniq 5, and Ford's Mustang Mach-E.

This rebate is part of a larger $600 million state package for cleaner vehicles, coming as EV sales have slowed nationally since the federal $7,500 tax credit was repealed last year. If you're weighing an EV purchase in California, it's worth checking which models and price points qualify once the program's final rules are released.