Teslas Just Got $1,500 Less Expensive In California

Electric Vehicles / Comments

As did just about every other EV on the market.

California residents just got 1,500 new reasons to consider an EV as their next vehicle.

Just this week, the California Air Resources Board, in cooperation with the state of California's electrical utility companies, launched a new $1,500 "California Clean Fuel Reward" for battery electric vehicles, plug-in-hybrid vehicles, and even electric motorcycles. Tesla happily trumpeted the news on its vehicle configurators for the Model S, Model 3, Model X, and Model Y, with a banner that pops up at the top of the screen - depending on your location - that reads: "$1,500 Clean Fuel Reward is now available for California residents."

2017-2020 Tesla Model S P100D Front View Driving Tesla
2016-2020 Tesla Model X Front Angle View Tesla
2017-2021 Tesla Model 3 Front View Tesla

For automakers like Tesla and GM, which have lost the full $7,500 federal EV tax incentive after reaching 200,000 EV sales in the US market, that $1,500 is a godsend, especially as it doesn't replace state programs like the Clean Vehicle Rebate Project. What's more, the new $1,500 Clean Fuel Reward isn't a tax credit, where one first has to have at least a certain amount of taxable income in order to get the full benefit, but a straightforward, upfront incentive.

Not all vehicles will receive the full incentive, mind you; a car needs to have a battery capacity of at least 5 kWh just to qualify for anything, with the amount ramping up to 16 kWh, where it's capped at $1,500. The good news is that just about every battery electric vehicle will qualify - even China's ugly-cute 17.9-kWh Kandi K27 - along with plenty of plug-ins, like the new Lincoln Aviator Grand Touring.

Our Favorite Automotive Easter Eggs
Our Favorite Automotive Easter Eggs
Everything You Need To Know About The Nissan 400Z
Everything You Need To Know About The Nissan 400Z
2020 Tesla Model Y Front View Tesla
2020 Tesla Model Y Side View Tesla

The best part of California's Clean Fuel Reward program is that it's uncomplicated, being taken straight off the vehicle's purchase price by participating dealers instead of requiring that the customer fill out a bunch of paperwork. But if you're now thinking: "That all sounds great. I think I'll go fly out to California and buy an EV to drive back," you should know that the vehicle must be registered in the state to be eligible.

2017-2021 Tesla Model 3 Front View Driving Tesla
2017-2021 Tesla Model 3 Front View Driving Tesla
2017-2021 Tesla Model 3 Side View Driving Tesla

Join The Discussion