By David Shepardson
WASHINGTON, Oct 16 (Reuters) – California said on Friday nearly 12,000 residents bought electric vehicles using rebates under a new $270 million program funded by the state and automakers.
Still, overall EV sales have fallen both in California and nationwide as President Donald Trump’s administration has removed federal incentives for EVs. EV sales are up globally.
The program for California residents buying their first EV was signed into law by Governor Gavin Newsom in July and 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 state sales through September 30 compared to 23% last year and 25% in 2024. Tesla vehicles account for more than half of EVs sold in California.
The program is still offering rebates through participating automakers, including Ford, GM, Honda, Hyundai, Kia, Toyota and its Lexus brand, Lucid, Nissan, Rivian, Subaru <9778.T>, 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’s 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)
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