Key facts
- California's new MyFirstEV incentive program offers $3,500 for new EVs and $1,750 for used EVs.
- New EVs must have an MSRP under $50,000 and used EVs under $25,000 to qualify.
- Manufacturers headquartered in California that produce only zero-emission vehicles are exempt from price caps.
- Lucid and Rivian are eligible for this exemption, while Tesla is subject to the price caps.
- The program is expected to launch this summer.
- Lucid stated it intends to participate and views the exemption as a way to increase EV accessibility.
California has introduced a new incentive program, MyFirstEV, aimed at making electric vehicles more accessible to first-time buyers. Signed into law by Governor Gavin Newsom, the program will offer an instant rebate of $3,500 for new EVs and $1,750 for used EVs at the point of sale, expected to launch this summer.
However, the program includes price caps: new vehicles cannot exceed a Manufacturer's Suggested Retail Price (MSRP) of $50,000, and used vehicles must be priced below $25,000. Crucially, an exemption within the bill allows electric vehicle manufacturers headquartered in California that exclusively produce zero-emission vehicles to participate regardless of their vehicle prices. This provision directly benefits companies like Rivian, based in Irvine, and Lucid, based in Newark, whose vehicles typically sell for prices above these caps.
Rivian's R1T truck starts under $80,000, and Lucid's Air sedan begins around $71,000. A Lucid spokesperson confirmed the company's intention to participate, viewing the exemption as a significant opportunity to make their vehicles more accessible. Tesla, despite its manufacturing presence and engineering headquarters in California, will not qualify for this exemption because its corporate headquarters are located in Texas. However, lower-priced versions of Tesla's Model 3 and Model Y could still qualify if they fall below the $50,000 cap.
The California Air Resources Board (CARB) will administer the program and expects to announce participating automakers next month. Governor Newsom's office framed the initiative as a successor to a federal EV tax credit program that was rolled back under the Trump administration.