California Governor Newsom floats $200M rebate plan for Tesla, EV industry

  • The administration of California Governor Gavin Newsom said Monday that the state’s proposed $200 million electric vehicle incentive program would apply only to first-time buyers and require participating manufacturers to offer matching incentives.
  • Under the new program, passenger vehicles priced at or below $55,000 would qualify for the rebate, along with $80,000 for vans, SUVs, and pickup trucks and $25,000 for used vehicles, Bloomberg News reported, citing a statement from Newsom’s office.
  • The cutoff would mean some of Tesla’s (TSLA) most popular models, as well as one variation of its Cybertruck, would qualify for a rebate at current prices.
  • The move comes after Congress last year ended a federal $7,500 state tax deduction on new EVs and a $4,000 used EV tax credit effective September 30.

Related tickers: Automotive Group (ABG), Group 1 Automotive (GPI), Penske Automotive Group (PAG), Tesla (TSLA), Toyota Motor (TM), Honda Motor (HMC), General Motors (GM), Ford Motor (F), Stellantis (STLA), Rivian Automotive (RIVN), and Lucid Group (LCID).

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