California EV rebate sets $50,000 MSRP cap for out-of-state firms

California's updated electric-vehicle rebate program provides a $3,500 incentive without an MSRP ceiling for companies headquartered inside the state. Companies headquartered outside California remain subject to a $50,000 MSRP cap under the same program.

Program details The policy distinguishes eligibility by corporate headquarters location rather than by the location of vehicle production. Rivian and Lucid, both headquartered in California, qualify for the uncapped rebate. Tesla, headquartered outside California, is subject to the $50,000 cap despite operating large-scale manufacturing facilities inside the state.

Sales context Most Tesla models currently sold fall below the $50,000 threshold, so the cap does not restrict the majority of its California sales. The rule set creates different treatment based solely on headquarters address.