Gavin Newsom Touts $200 Million EV Incentive Program For First-Time Buyers In California- What It Means For Tesla, Ford, Rivian And GM

California Governor Gavin Newsom (D) has outlined a proposed $200 million EV incentive program available to first-time EV buyers as a point-of-sale rebate.

Automakers To Match Incentive Amount

The automakers participating in the program would be required to match the incentive amount offered to customers, according to the California Air Resources Board (CARB) Chair Lauren Sanchez, via a post on LinkedIn on Monday.

Sanchez shared in the post that the administration's goal was to "move fast to support the market while ensuring accessibility and impact by prioritizing first-time ZEV buyers, including used cars."

The bill, which has yet to be approved by lawmakers, proposes incentives on passenger vehicles priced up to $55,000, while SUVs, Pickup trucks, and Vans priced up to $80,000 also qualify. The incentive would also be applicable for used EVs up to $25,000.

If approved, the deal could benefit the likes of Tesla Inc. (NASDAQ:TSLA), as well as automakers like Ford Motor Co. (NYSE:F) and General Motors Co. (NYSE:GM). Rivian Automotive Inc. (NASDAQ:RIVN) could also stand to benefit from the program should it participate.

The final amount of the incentive is yet to be decided and will be determined by the CARB.

The program comes after President Donald Trump announced the axing of the $7,500 Federal EV Credit last September. Newsom has been a vocal critic of Trump's anti-EV stance. The Governor, in 2024, had said that he would propose a new EV credit program.

CARB Hails Canada-China Deal

The news comes as the CARB Chair had hailed Canada's decision to allow up to 49,000 EVs in the country at a reduced tariff rate. Sanchez had shared that she was “excited to see what unfolds in Canada" following the agreement. It's worth noting that California recently reached the 2.5 million EV sales milestone.

Trump, on the other hand, delivered sharp criticism of the deal, sharing that Canada was “systematically destroying itself,” and that the deal was a disaster for the country. He also termed the deal as “one of the worst deals” of any kind in history. Trump had also threatened to levy 100% tariffs on Canada.

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