By David Shepardson WASHINGTON, Oct 16 (Reuters) – California said on Friday that nearly 12,000 residents bought electric vehicles since August using rebates under a new $270 million program funded by the state and automakers. Still, overall EV sales have fallen in California and nationwide as President Donald Trump’s administration has removed federal incentives for […]
U.S.
Nearly 12,000 California residents bought EVs using state rebate program
Audio By Carbonatix
By David Shepardson
WASHINGTON, Oct 16 (Reuters) – California said on Friday that nearly 12,000 residents bought electric vehicles since August using rebates under a new $270 million program funded by the state and automakers.
Still, overall EV sales have fallen in California and nationwide as President Donald Trump’s administration has removed federal incentives for them. EV sales are up globally- fueled by rising oil prices.
The program for California residents buying their first EV, which Governor Gavin Newsom signed into law in July, 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.
California said EVs accounted for 18% of all sales in the state through September 30, down from 23% last year and 25% in 2024. Tesla vehicles account for more than half of EVs sold in California.
About $70 million has been spent so far with 11,806 new EVs and 132 used EVs purchased — leaving $200 million in rebate funding. The vehicles purchased under the program include 5,658 Tesla, 1,700 Hyundai, nearly 1,400 Toyota and 1,100 General Motors EVs.
Nissan just joined the program and Mitsubishi Motors will begin in November, California said.
Other automakers participating in the program are Ford, Honda, Kia, Toyota’s Lexus brand, Lucid, Rivian, Subaru and Volvo.
There are no funds remaining for Tesla models under the program, which includes $135.5 million in state funding and $135.5 million from participating automakers.
The federal government has dropped support for EVs and charging programs. 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 has taken aim at EVs on a number of fronts, including signing legislation in June 2025 against California rules, adopted by nearly a dozen other states, that aim to phase out new gasoline-powered cars by 2035. California has sued to challenge the procedure used to reverse the landmark EV rules.
The administration has finalized other changes that will save automakers billions of dollars in purchasing credits from Tesla and others to meet prior regulatory requirements.
(Reporting by David Shepardson; Editing by David Gregorio)