Tesla Qualifies for New First-Time EV Buyer Incentive in California

Tesla is among fourteen automakers whose vehicles qualify for California's new MyFirstEV incentive program, which offers first-time electric vehicle buyers $3,500 off new-inventory purchases of a Model 3 or Model Y.

What Happened

California launched the MyFirstEV incentive program to help those buying an EV for the first time. The $3,500 incentive applies to eligible new-inventory Model 3 and Model Y purchases, with orders placed on or after August 3, 2026 and delivery taken while funds remain available.

The state has set aside $135.5 million for the program, which is expected to incentivize over 73,000 zero-emission vehicles. Incentives are offered at the point of sale, and used EVs qualify for a partial incentive of $1,750.

Half of each incentive amount is covered by California, with participating OEMs covering the other half. Vehicles from non-California-headquartered automakers must have an MSRP of $50,000 or less; used vehicles must be priced at $25,000 or less and be at least two model years older than the year of purchase. Vehicles must also be purchased as certified pre-owned from manufacturers — private dealerships are not eligible.

Tesla is launching in August 2026 alongside Chevrolet, Ford, Hyundai, Kia, and Lucid, with additional automakers joining through November.

Why It Matters

For first-time EV buyers in California considering a Model 3 or Model Y, the incentive reduces the upfront cost of new-inventory vehicles at the point of sale. Combined with the state's $135.5 million fund, the program aims to strengthen California's zero-emission vehicle market and support automotive innovation.

The Bottom Line

California expects the MyFirstEV program to incentivize over 73,000 ZEVs across fourteen participating automakers. Tesla qualifies for the full $3,500 incentive on eligible new-inventory Model 3 and Model Y purchases ordered on or after August 3 while funds last.