SACRAMENTO, Calif. (Diya TV) – Electric vehicle titan Tesla is the only major player left out of a new California proposal offering rebates for EV buyers, raising questions over the state’s shifting priorities in its quest for cleaner transportation. Under this plan, some EV manufacturers will no longer be eligible for incentives to their buyers – a move toward increased access to electric vehicles among all consumers.
The California air resources board (CARB) unveiled the proposal, which will offer rebates of up to $7,500 to EV buyers. But eligibility will be tied to strict requirements, such as vehicle price ceilings, meaning that Tesla’s full-fat models won’t qualify for the incentives under the new affordability threshold. This is a big shift for Tesla, which has long enjoyed state and federal inducements that helped propel the company to its current market lead.
“The aim is that the rebates enable low and middle-income consumers to access electric vehicles,” said a CARB spokesperson. “We need to ensure that the benefits of clean transportation are shared more widely and equitably.”
Tesla, the luxury EV maker, has been panned for making electric vehicles too expensive for middle-class buyers. CEO Elon Musk has defended the company’s pricing strategy by suggesting that the long-term savings in fuel and maintenance pay for the higher upfront cost of Tesla models. Yet, the new proposal seeks a state preference for cheaper models from other automakers.
Companies like General Motors, Ford, and Rivian, whose vehicles will be within the range of the proposed price limits, will remain eligible for California’s EV rebate program. A recent ramp-up in the production of more affordable EV models by these automakers goes in tandem with the state’s climate goals: getting millions of zero-emission vehicles on roads by 2035.
The decision brings debate among ev industry experts and environmental advocates. Some say that this action may prompt Tesla to hasten its lower-cost models’ production, such as Cybertruck and the Model 3 restyle. Others see it more as a way to slow down Tesla’s on-road presence while further slacking adoption rates on the account of the entire EV industry.
“California has led the United States in electric vehicle adoption, and Tesla was a massive part of that success,” said Daniel Sperling, a transport expert at the University of California at Davis. “But this proposal reflects a shift toward making EVs more accessible to everyday consumers.”
The automaker has not yet issued an official response to the proposal, though in a post on X, Musk said in response “this is insane.”
