California Launches MyFirstEV Program With Dealer-Applied Discounts and Automaker Matching
The $270 million initiative targets first-time buyers with no income limits but caps prices at $50,000 for new vehicles.
California has launched a new state EV purchase incentive program designed to address shortcomings that plagued earlier federal incentives.
What Happened
Governor Gavin Newsom signed SB 168, establishing the MyFirstEV program with a $3,500 discount for new EVs and $1,750 for used EVs. The $135 million in state funding will be matched by participating automakers—Ford, GM, Honda, Hyundai, Kia, Lucid, Mitsubishi, Nissan, Rivian, Subaru, Tesla, Toyota and Volvo—bringing total program funding to $270 million. Unlike the former federal Clean Vehicle Credit, this incentive is applied directly at the dealership, requires no tax paperwork, and has no household income ceiling. Instead, vehicles are capped at $50,000 for new purchases and $25,000 for used ones. The price cap does not apply to EV-only automakers headquartered in California—meaning Rivian and Lucid qualify while Tesla, which relocated its headquarters to Texas in 2021, does not.
Why It Matters
The program is designed specifically to attract first-time EV buyers rather than subsidizing existing EV owners, a structural shift intended to expand the EV market base. By removing income caps and tax-filing requirements, California aims to simplify access—addressing two major pain points that critics cited with federal incentives. The automaker-matching model doubles public investment without increasing taxpayer cost, though it also signals industry commitment to moving inventory.
The Bottom Line
California's MyFirstEV program offers a streamlined, dealer-applied incentive structure with greater simplicity than the defunct federal credit, but its $50,000 price cap and first-time-buyer restriction may limit which vehicles and buyers qualify. Whether other states follow will depend on budget availability and policy priorities.
