Hyundai and Rivian are both opting into California's instant rebate of up to $3,500 for people buying their first electric vehicle.
As USA Today detailed, the duo's moves offer a measure of help after federal EV tax credits disappeared.
What's happening?
California's new MyFirstEV program is for residents purchasing their first EV, as the Governor's office described in a statement. Under the plan, eligible new EV buyers could get $3,500 off, while qualifying used EV buyers could receive $1,750.
The money is expected to be available by the end of the summer through a $135 million state budget agreement and grants funded by automakers.
"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," California Gov. Gavin Newsom said in the statement.
Since participation is voluntary for carmakers, only brands that opt in will be able to offer the rebate. Hyundai told USA Today on July 15 that it intends to join Irvine-based Rivian in the program, which opted in earlier in the week.
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In most cases, qualifying new EVs must be priced below $50,000, and used EVs must come in under $25,000. The outlet noted California-based zero-emission vehicle companies are not subject to those price ceilings, which is a setup that could favor domestic companies Rivian and Lucid.
Why does it matter?
The rebate arrives after the federal government ended its popular $7,500 EV tax credit on Sept. 30, 2025. With new EV prices averaging nearly $55,000, California is trying to make the upfront cost of going electric less daunting for households.
EVs can help drivers save money over time on fuel and maintenance while also reducing tailpipe pollution that contributes to unhealthy air. In a state long affected by smog and wildfire-related air quality issues, that can translate into real public health benefits.
California remains the nation's largest EV market. The Alliance for Automotive Innovation said EVs and hybrids made up 17.5% of the state's new light-duty vehicle registrations in early 2026. USA Today reported California was the only state to top a 20% market share in 2025.
The effects may not stop at the state line. California's vehicle standards often influence other governments, and 17 states in recent years have adopted at least part of California's clean car regulations, according to the outlet.
What's being done?
California is stepping in where federal policy has retreated. The state is targeting first-time EV buyers across all income levels rather than limiting the benefit to higher earners.
Officials say more automakers are expected to join the program soon. Lindsay Buckley, a spokeswoman with the California Air Resources Board, wrote the agency expects to announce the full list within the next month in an email to USA Today.
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