California is stepping in with a sizeable financial incentive for drivers looking to go electric. As spotted by Sawyer Merritt (@SawyerMerritt) on X, California Governor Gavin Newsom has signed SB 168. The bill creates a brand new state point-of-sale rebate program called MyFirstEV, giving first-time zero-emission vehicle buyers in California $3,500 off a new electric vehicle.
This state rebate comes after the Trump administration ended the $7,500 federal EV rebate last fall, which left buyers without a nationwide incentive. The new program features a total budget of $270 million, funded through a combination of state investments and matching automaker contributions.
In an official press release, Governor Newsom took a direct swing at federal policies, stating:
“Donald Trump is doing everything in his power to pollute our air and surrender the clean car industry to China on a silver platter. California is putting its foot on the accelerator. With our new instant rebate program for electric vehicles, we’re making it easier for families to drive clean, breathe clean, and keep more money in their pockets. As California leads the world toward a clean future, our message is clear: no one can stop Californians from choosing vehicles that are better for their wallets and better for the air they breathe.”
How the Instant Rebate Works
The MyFirstEV program is expected to go into effect later this summer. The instant discount is deducted right at the dealership, and it’s open to any Californian buying their first zero-emission vehicle, regardless of their income level. Here’s what you can get:
$3,500 off new electric vehicles with an MSRP up to $50,000
$1,750 off used electric vehicles sold for up to $25,000
One caveat in the bill states that if an EV manufacturer is headquartered in California as of January 1, 2026, there are no price limits on its vehicles. With its corporate headquarters in Irvine, California, Rivian qualifies for this exemption, meaning the rebate applies to all of the electric adventure brand’s vehicles. Rivian’s primary competitor, Tesla, isn’t eligible for the exemption, although most of its vehicles can get the rebate.
Savings on Rivian Vehicles
With Rivian skirting the MSRP limit outlined in the bill, all of its vehicles will be eligible for the $3,500 point-of-sale discount.
Rivian Model | Original Starting Price | Starting Price After Rebate |
|---|---|---|
R2 Performance | $57,990 | $54,490 |
R1T Dual | $79,990 | $76,490 |
R1S Dual | $83,990 | $80,490 |
R1T Tri | $100,990 | $97,490 |
R1S Tri | $106,990 | $103,490 |
R1T Quad | $115,990 | $112,490 |
R1S Quad | $121,990 | $118,490 |
Had Rivian not been headquartered in California, only the recently launched R2 — which began deliveries last month with the inaugural Performance Launch Package trim — would have qualified for the new California rebate.
The rebate brings the starting price of a Rivian EV in California down to just $54,490, and that too for the next-gen R2. Rivian also plans to launch even cheaper R2 trims in the future, including a Standard trim that’s expected to start around $44,990. The $3,500 state rebate would bring that variant’s starting price down to just $41,490 (as long as the funding doesn’t run out by the time the R2 Standard launches and/or the state renews the program).
If you’re in California and have been on the fence about finally buying a Rivian or have an R2 reservation with a late summer order window, this new rebate could be enough to tip the scales.
