California is now handing first-time electric vehicle buyers an instant $3,500 discount on a new Tesla Model 3 or Model Y, through a state program called MyFirstEV. Unlike the old federal tax credit, you don’t file for it later. The discount comes off the price at the point of sale.
The program comes from SB 168, signed by Governor Newsom in July, and is run by the California Air Resources Board. The state put up $135.5 million, and participating automakers, Tesla among them, match that dollar-for-dollar. That funds a $3,500 rebate on new zero-emission vehicles and a $1,750 rebate on qualifying used ones.
What actually qualifies
To get the new-vehicle rebate, you need to be a first-time ZEV buyer or lessee, and you sign an attestation confirming that. The vehicle’s base MSRP has to be $50,000 or under. That’s the important detail for Tesla shoppers: it’s the base model’s price that counts, not what you actually pay after options, so a Model 3 or Model Y with upgrades can still qualify as long as the entry trim is priced under the cap. According to InsideEVs, that currently limits Tesla’s participation to the Model 3 and Model Y, not Model S, Model X, or Cybertruck.
Used EVs qualify for the smaller $1,750 rebate if the vehicle sells for $25,000 or less, is at least two model years old, and comes certified pre-owned from a franchised dealership. Plug-in hybrids don’t count; hydrogen fuel-cell vehicles do.
Why the timing matters
The program went live on August 3, 2026, and rollout dates vary by automaker. Teslarati reports that orders need to be placed on or after that date, with delivery completed while funds remain available. That last part is the catch: CARB is explicit that the rebate runs on a first-come, first-served basis until each automaker’s share of the money is gone, and each automaker’s allocation is separate. One brand running out doesn’t affect another’s.
Nothing here guarantees Tesla’s allocation will still be funded by the time you’re ready to order. If you’re a first-time EV buyer in California weighing a Model 3 or Model Y, the practical move is to confirm the rebate is still showing at checkout on Tesla’s site or with your delivery advisor before you count on it, rather than assuming it’ll still be there once you’ve finished configuring.
The rebate can also be combined with other CARB incentive programs, including the Driving Clean Assistance Program and Clean Cars 4 All, for buyers who qualify for those separately. It has no effect on federal incentives, since the federal EV tax credit itself no longer applies to vehicles acquired after September 30, 2025.
Photo by Kindel Media.
