California's new EV incentive gives a leg up to Lucid and Rivian 23%
By Lloyd Lee28%
7/13/2026, 11:27:46 PM
BS Summary: This article contains 2 faulty reasoning types, including Framing Effect, with Appeal to Emotion as the most egregious example at 4.4% saturation with 24 hits. Analysis detected 45 faulty-reasoning hits from 542 analyzed words, generating a BS Score of 36.5% and a BS Rank of 23% (11,807 of 15,282 articles). This article is better (less manipulative) than 77.30% of the article peer group.
Companies like Rivan and Lucid could be exempt from the price caps that bar EVs from qualifying for California's new incentive program.
Patrick T.
Fallon/AFP via Getty Images
CA Gov.
Gavin Newsom signed a new bill that gives first-time EV buyers a $3,500 rebate.
The bill limits the incentive to new EVs priced at $50,000 or less.
The bill exempts California-based companies, such as Rivian and Lucid, from the price cap.
California is launching a new incentive program for first-time electric vehicle buyers that gives companies like Rivian and Lucid an edge.
Gov.
Gavin Newsom signed a bill, SB 168, into law on Monday that will give first-time EV customers an instant incentive of $3,500 on a new vehicle and $1,750 toward a used one at the point of sale.
The program, called MyFirstEV, is expected to launch this summer, though the state did not announce an exact start date.
A spokesperson for the California Air Resources Board (CARB), which will administer the statewide program, told Business Insider that the agency expects to announce participating automakers next month.
The bill has a price cap for EVs to qualify.
New vehicles can't have a manufacturer's suggested retail price above $50,000, while used vehicles can't sell for more than $25,000.
However, the law exempts EV makers headquartered in California that manufacture only zero-emission vehicles, allowing companies like Rivian and Lucid to participate in the incentive program regardless of vehicle prices.
Rivian is headquartered in Irvine, while Lucid is based in Newark.
Both companies sell vehicles priced well above the bill's caps.
Rivian's R1T truck has a starting price of under $80,000.
Lucid primarily sells luxury EVs, with the Air sedan starting at around $71,000.
A Lucid spokesperson told Business Insider that it intends to participate in the statewide program and that Lucid Air and Gravity vehicles will be eligible for California customers.
"We see this as a meaningful opportunity to help make advanced electric vehicles more accessible to California buyers," the spokesperson said, adding that the company "applauds the inclusion of the exemption."
Although Tesla manufactures the Model 3 and Model Y at its Fremont factory and maintains an engineering headquarters in Palo Alto, it would be excluded from the exemption.
The company moved its corporate headquarters from California to Austin in 2021.
The CARB spokesperson confirmed that Lucid and Rivian could qualify for the exemption, while Tesla would be subject to the price caps.
Tesla wouldn't be entirely shut out of the incentive program.
Lower-priced versions of the Model 3 and Model Y that fall below the $50,000 cap could qualify if the company chooses to participate.
The CA governor's office presented the program as a replacement for the federal EV tax credit program, which the Trump administration rolled back.
Under the now-defunct federal program, EV buyers could get up to $7,500 in incentives.
"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," Newsom said in a statement.
Spokespeople for Rivian and Tesla did not respond to a request for comment.
Read the original article on Business Insider
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