Tesla Model 3/Y No Longer Qualifies for California EV Rebates

Tesla’s recent price hikes have caused the automaker to price out of California’s rebate program, the Clean Vehicle Rebate Project, according to Forbes.

The program offers rebates of up to $2,000 for qualifying electric vehicle (EV) purchases, and it can be applied to models costing up to $45,000 or $60,000 if they’re crossover vehicles.

Due to recent Tesla price increases, the program said, “any Tesla Model 3 or Model Y that was ordered on or after March 16, 2022, is not eligible for a CVRP rebate.”

Currently, a Tesla Model 3 starts at $46,990, adding to over $50,000 after taxes and fees.

CEO Elon Musk said in recent weeks that prices would increase due to “significant recent inflation pressure in raw materials & logistics,” saying that the automaker isn’t alone in these pressures.

Still, the loss of a $2,000 rebate may not necessarily stop prospective buyers, especially as gas prices soar amidst Russia’s invasion of Ukraine.

Tesla orders in areas with particularly high gas prices have actually surged by 100 percent as detailed in a report earlier this month, which means buyers may still be looking to move away from gas-burning vehicles.

Tesla’s vehicles are still eligible for a $750 federal rebate, though the company lost eligibility for the $7,500 federal EV rebate after surpassing a limit on total sales volume for the incentive.