Tesla Burns Through California EV Rebate in 5 Days
Get the Energy newsletter
Daily energy & climate — solar, EVs, oil, the policy fights and tech bets shaping the transition. Free.
- Tesla exhausted its entire California MyFirstEV rebate allocation in five days — live August 3, fully drained by August 8 — with buyers claiming roughly half in the first three days and spending an estimated $18 million in combined state and matching rebates on Tesla vehicles
- MyFirstEV launched with $135.5 million in state funds matched dollar-for-dollar by participating automakers for a combined ~$271 million pool, giving first-time buyers $3,500 off new EVs under $50,000 or $1,750 off used EVs under $25,000, with no income cap and the discount applied at point of sale
- The program's $50,000 price cap is waived for California-headquartered, EV-only makers like Rivian and Lucid — but not Tesla, which moved HQ to Texas in 2021 — meaning only Tesla's sub-$50,000 Model 3 and Model Y configurations qualify
- Tesla registered 45,953 vehicles in California in Q2 (up 11.8% year-over-year), roughly 500 cars per day, accounting for 56.7% of every ZEV registered in the state through June, with the Model Y alone booking 54,327 registrations in H1
- Tesla's California registrations crashed 24% in Q1 after the federal $7,500 EV tax credit expired and remain down 6.5% year-to-date, though the brand rebounded 11.8% in Q2
- Roughly 13 automakers split the program's funds (~roughly $9 million in state funds each before manufacturer match), with Tesla, Hyundai, and Lucid going live August 3 while Ford, Rivian, Chevy, and Kia come online later in August
Why it matters: Tesla's five-day burn rate was predictable given the automaker sells ~500 eligible EVs daily in California while controlling only ~$9 million in state rebate funds. The rebate structure was also designed to quietly favor California-headquartered EV-only makers like Rivian and Lucid by waiving the $50,000 price cap — a waiver Tesla forfeited when it moved HQ to Texas in 2021.
Ask SkimNews
