California Offers $3,500 Incentive for New Electric Vehicles

WHO:

Forbes - California residents, General Motors, Rivian, Lucid, Tesla, Ford, Hyundai, Chargeonomics, John Swanton (spokesman for the California Air Resources Board), Stephanie Valdez Streaty (director of Industry Insights for Cox Automotive), Loren McDonald (CEO and chief analyst of Chargeonomics).

WHAT:

Forbes - California is launching a $3,500 rebate for first-time buyers of new electric vehicles (EVs) priced up to $50,000.

Forbes - The state budget includes $135.5 million for the EV incentive program.

Forbes - Used EV purchases will receive a $1,750 discount.

CNBC - The Manheim Used Vehicle Value Index for EVs increased 12% compared to June 2025.

CNBC - Average pricing for wholesale EVs jumped 11.5% to roughly $30,400.

CNBC - Used EV sales reached 42,923 units in May, up 5.5% month over month and 24.7% year over year.

WHERE:

Forbes - California, specifically mentioning Colma, California for a General Motors dealership.

CNBC - Detroit, Michigan, where the report was issued.

WHEN:

Forbes - The new EV incentive program is set to launch in the coming weeks, with details to be provided next month.

CNBC - The Manheim Used Vehicle Value Index report was released on a Wednesday.

WHY:

Forbes - The incentive aims to boost EV sales in California after a decline following the elimination of a $7,500 federal rebate.

CNBC - The increase in demand for used EVs is attributed to the Iran war and high U.S. gas prices.

HOW:

Forbes - The $3,500 rebate is funded half by state funds and half by automakers.

CNBC - The average used EV listing price as of May was $37,083, with retail prices typically following wholesale price changes.

(UPDATED July 9, 2026 01:32 UTC)

California is set to launch a new electric vehicle incentive program that will offer a $3,500 rebate for first-time buyers of new EVs priced up to $50,000, with the program funded equally by state funds and automakers. Additionally, used EV purchases will receive a $1,750 discount, as the demand for these vehicles continues to rise, reflected in a 12% increase in the Manheim Used Vehicle Value Index for EVs compared to the previous year. The details of this program are expected to be announced next month, aiming to stimulate sales after a decline following the removal of a $7,500 federal rebate.