Key facts
- Nearly 12,000 California residents bought EVs using state rebates.
- The program has $135.5 million in state funding and $135.5 million from automakers.
- EVs accounted for 18% of California sales through September 30, down from 23% last year.
- Tesla vehicles account for more than half of EVs sold in California.
- Federal EV tax credits were eliminated in 2025.
California said on Friday nearly 12,000 residents bought electric vehicles using rebates under a new $270 million program funded by the state and automakers. Overall EV sales have fallen both in California and nationwide as federal incentives for EVs were removed. The program offers $3,500 rebates on new EVs with retail prices of up to $50,000 and a $1,750 rebate for used EVs costing no more than $25,000. EVs accounted for 18% of all California sales through September 30, compared to 23% last year. Tesla vehicles account for more than half of EVs sold in California. The program includes $135.5 million in state funding and $135.5 million from participating automakers, but there are no funds remaining for Tesla models. President Donald Trump signed legislation in 2025 that killed the federal $7,500 EV tax credit and the federal $4,000 used EV credit, which has reduced US sales. California's previous rebate program ended in 2023 and spent $1.49 billion to subsidize 586,000 EV purchases over a decade. Trump also signed legislation in June 2025 against California's rules to phase out new gasoline-powered cars by 2035.