EV Market in California Sees Boost with New Rebates
With California’s gas prices exceeding the national average, the state’s electric vehicle (EV) market looks poised for growth as EV rebates make a return. Governor Gavin Newsom has allocated $135 million in his final state budget to provide incentives for both new and used EVs. These incentives come not long after the expiration of a federal tax break that offered $7,500 for new EVs and $4,000 for used ones.
The California Air Resources Board is working on agreements with dealerships to implement these rebates. The incentives are expected to be less generous than the previous federal credits but still aim to encourage Californians to choose electric vehicles.
Incentives and Eligibility for EV Rebates
Eligible buyers will receive $3,500 off new EVs and $1,750 off used ones. Unlike past federal tax credits, these rebates offer immediate discounts at purchase, eliminating the need to apply for a credit later. This translates to a 4% to 7% refund for most buyers.
However, not all electric vehicle buyers qualify for these discounts. According to Senate Bill 168, the incentives are available only to first-time EV buyers. Eligibility is confirmed by a buyer attestation that they have not previously owned a zero-emission vehicle.
Rise in Used-EV Sales
Despite slightly lower fuel prices compared to the beginning of the Iran conflict, they remain above the national average. Many drivers seeking to save on fuel and vehicle costs are turning to pre-owned electric cars.
While the sales of new EVs have faced challenges due to prior policies, used EVs are gaining traction because they offer better pricing compared to new vehicles and used gas-powered cars. Sales of used electric vehicles showed an increase of over 20% year over year in the first quarter of 2026, based on findings by Cox Automotive.
Experts note that used EVs often provide greater value as their price is comparable to traditional used cars.
Affordable Electric Pickup Truck
For those considering new EVs, a market-entry electric truck priced under $25,000 will be available soon. Slate Auto has designed a customizable truck that could invigorate the industry.
The concept is straightforward: pay for only the features you desire. The base model lacks power windows and paint, while optional upgrades like smartphone-compatible screens, speakers, and color customization are available for an additional cost. A $5,000 conversion kit can transform the truck into an SUV. Deliveries are set to begin later this year.
Including upgrades, the basic SUV will cost just under $30,000 and offer a projected 205-mile range, compatible with Tesla charging infrastructure.