Governor Gavin Newsom (D-CA) on Wednesday unveiled a new EV rebate program in the state that could provide a major boost to Tesla Inc.‘s (NASDAQ:TSLA) Semi truck sales.
$1 Billion EV Rebate
Newsom took to X to share the news, saying that the rebate program would take effect from June 26, where “authorized retailers will have rebates of $7,500 to $120,000.” Newsom also reaffirmed California’s stance on EVs. “While Trump forfeits American automotive leadership, we’re continuing to dominate in the space,” he said.
According to a press release by Newsom’s office, the rebate program can be applied to public and private fleets of new electric medium‑ and heavy‑duty commercial vehicles like drayage trucks, electric semis, box trucks, delivery vans and more.
The program will see an initial funding of $250 million this year, with a funding of over $1 billion in total available through 2030, the statement said. The funding will come through via the Low Carbon Fuel Standard (LCFS) program.
With funding available for Semi trucks, the program can provide a boost to the Semi, as well as to Newsom’s clean energy goals. Notably, the Semi’s $290,000 price is almost half of its diesel-powered rivals
Newsom had earlier touted a $200 million EV rebate program aimed at first-time EV buyers with proposed incentives on passenger vehicles priced up to $55,000, while SUVs, Pickup trucks, and Vans priced up to $80,000.
Gavin Newsom Slams Trump
Newsom recently delivered sharp criticism of President Donald Trump, sharing that the administration, as well as the Republican Party, had ceded the U.S.’s role as the leader in the global EV race to China, sacrificing “good-paying jobs” as well as manufacturing capabilities.
Meanwhile, demand for EVs fell by over 28% in the U.S. during April 2026 as automakers sold over 120,000 units in the country, as gas prices continue surging and tensions in the Middle East continue to brew amid the Iran war.
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