Tesla buyers burned through California's new EV rebates in days

Useful takeaways from this story.

Gavin Newsom launched MyFirstEV, a new state program offering first-time zero-emission vehicle buyers $3,500 off a new vehicle or $1,750 off a used one, right at the point of sale.

Instead, somebody with no intention of buying an EV is helping pay for someone who does.

MyFirstEV doesn't even reserve that help for people who couldn't otherwise afford the car.

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The useful part

Gavin Newsom launched MyFirstEV, a new state program offering first-time zero-emission vehicle buyers $3,500 off a new vehicle or $1,750 off a used one, right at the point of sale. Instead, somebody with no intention of buying an EV is helping pay for someone who does. MyFirstEV doesn't even reserve that help for people who couldn't otherwise afford the car.

How it works

According to Tesla, buyers had to place their orders between August 3 and August 7 to qualify, and the company now says its allocated funds have been depleted.
California split The federal government spent years offering buyers a tax credit of up to $7,500 to encourage electric vehicle adoption.
Congress eliminated the credit, ending it for vehicles acquired after September 30, 2025.
The state has committed $135.5 million to MyFirstEV, with participating automakers matching California's contribution dollar for dollar.
That creates a combined $271 million for first-time zero-emission vehicle buyers.

Example or evidence

California's response was essentially to build its own version.

Details worth keeping

Washington eliminated the federal EV tax credit. California didn't waste much time replacing it. Tesla's allocation of MyFirstEV money was exhausted almost immediately.

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