California is going its own way on electric vehicles. On Monday, Governor Gavin Newsom officially launched the state's Zero Emission Vehicle (ZEV) rebate program, offering first-time EV buyers an instant $3,500 discount on new electric cars. The move is a direct response to the Trump administration's repeal of the federal EV tax credit — and Newsom isn't mincing words about it.
"California is filling the void left by Trump and the GOP repealing the federal electric vehicle tax credit," Newsom said in a post on X. "We won't forfeit the future to China."
The program, called MyFirstEV, is set to launch this summer with a budget of $135.5 million from the state, which will be matched by participating automakers. It's part of a broader $600 million ZEV investment package Newsom has been touting. The rebate applies to new EVs with a manufacturer's suggested retail price of up to $50,000, while used EVs get a $1,750 discount. The key requirement: you have to be a first-time ZEV buyer.
Newsom didn't hold back in his criticism of the Trump administration's energy policies. "Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter," he said in an official statement. He also accused the federal government of "leaving American workers and families to foot the bill" for "reckless" Middle East conflicts and "Big Oil giveaways."
The list of participating automakers hasn't been announced yet, but some big names are already poised to benefit. Rivian (RIVN) and Lucid (LCID), both of which have a strong foothold in California, will be exempt from the $50,000 price cap — meaning their more expensive models could still qualify. Tesla (TSLA) could also get a boost, as the Model 3 starts under $50,000. None of the three companies immediately responded to requests for comment.
California already has a robust EV infrastructure, with over 200,000 public chargers and an estimated 800,000 residential chargers. Newsom also noted that the state has hit 2.5 million EV sales since he took office in 2019, calling it a sign that California is leading the charge on clean energy vehicles. Senator Adam Schiff (D-CA) joined in the criticism, accusing the White House of deliberately slowing down EV adoption through its policies.
Newsom has been a vocal critic of President Trump's pro-fossil fuel stance, recently slamming Chevron (CVX) for profiting from the war in Iran and urging Californians to avoid certain oil company brands. The new rebate program is the latest salvo in an ongoing battle between the state and the federal government over climate policy — and California is making it clear it won't back down.






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