With California gas prices above the national average and electric vehicle rebates making a comeback, the state’s EV market could get a boost.
In his final state budget as governor, Gavin Newsom allocated $135 million to provide incentives for new and used EVs.
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This comes nearly a year after the expiration of a $7,500 federal tax incentive on a new EV and $4,000 on a used one.
The EV incentives will take effect in the coming weeks as the California Air Resources Board irons out agreements with dealerships, my colleague Caroline Petrow-Cohen writes.
Here’s what buyers can expect.
Incentives and exceptions for EV rebates
The new incentives are less generous than the federal credits were but could still help motivate Californians to go electric.
Eligible buyers will receive $3,500 off new EVs and $1,750 off used ones. Unlike the federal tax credits that expired in September, these incentives offer an instant discount and don’t require buyers to apply for credit later.
The rebates will mean that most eligible buyers will, effectively, get 4% to 7% of their money back.
Not every electric-vehicle buyer is eligible for the discounts, however. They are available only to first-time EV buyers, according to the legislation.
Senate Bill 168 says the buyer’s eligibility will be “confirmed by a buyer attestation” that they have not previously owned a zero-emission vehicle.
Used-EV sales get a jump-start
Although California fuel prices have come down slightly since the start of the Iran war, prices are still higher than the national average.
As a result, drivers looking to save money on gas and car purchases are eyeing pre-owned vehicles.
Sales of new EVs were still declining following blows to the industry from the Trump administration, Petrow-Cohen reported in April, but used EVs are bucking that trend because they compare more favorably in price to new cars and used gas-powered cars.
Used-EV sales increased more than 20% year over year in the first quarter of 2026, according to data from Cox Automotive.
Used electric vehicles now cost around the same as used traditional cars and often offer better value, experts said.
The nation’s cheapest EV pickup truck
If you are looking to buy a new EV, an electric truck for less than $25,000 will hit the market later this year.
Slate is making an affordable bare-bones truck that can be customized.
(Myung J. Chun / Los Angeles Times)
At a time when demand for new electric vehicles is cooling and cars are getting harder to afford, EV company Slate Auto has made a customizable truck that could bring a fresh wave of excitement to the industry.
Slate’s vehicle is built around a simple concept — pay only for what you actually want. Deliveries will begin later this year and accelerate in 2027.
Buyers will start with a basic truck without power windows or even paint and can then customize it however they like. Smart-phone-compatible screens, speakers, colored wrap or paint will cost extra. A $5,000 kit even converts the truck into an SUV.
For just under $30,000 total, customers can get a basic SUV in a fastback or squareback style. Whether it’s configured as a truck or SUV, the EV will have an estimated range of 205 miles and will be compatible with Tesla chargers.
Today’s top stories 
(Jim Cooke / Los Angeles Times)
2026 California propositions voter guideCalifornia voters will consider 14 sweeping ballot measures on Nov. 3.Headlining the ballot: a one-time billionaire tax and rival limits on new levies, alongside fights over voter ID rules, recall elections and special-tax thresholds.Post-Fourth of July heat waveStrict new limits on student loans for graduate schoolNew federal rules sharply cap graduate-student loans, ending the ability to borrow the full cost of tuition and living expenses for many degrees.Effective July 1, borrowing is restricted to $20,500 annually, with a $100,000 cap.The future of California court transcriptsWhat else is going onCommentary and opinionsThis morning’s must-readAnother must-readFor your downtime 
A New York-style pizza with double pepperoni cups from Pizza Cafe L.A. in Silver Lake.
(Jenn Harris / Los Angeles Times )
Going outStaying inA question for you: What are the most unique town names in California?
Doug Y. writes: My favorite place name in California is Bootjack, CA.
Ethan H. writes: I’ve always loved the story about how Yreka, California, got its name. A baker painted a canvas sign in a nameless boom town during the gold rush. Newcomers read the sign “BAKERY” from the back, and asked if that was the name of the town. The name stuck, Yreka, without the B. [Editor’s note: Mark Twain’s account is very similar to that lore. The town notes that the name was “apparently taken from a Shasta Indian word” indicating nearby Mt. Shasta.]
Email us at essentialcalifornia@latimes.com, and your response might appear in the newsletter this week.
And finally … your photo of the day 
Justin Yaskowitz, 24, dressed as Uncle Sam, paddles to the starting line on his surfboard for the second leg of an Ironman competition on July Fourth in Hermosa Beach.
(Genaro Molina / Los Angeles Times)
Today’s great photo is from Times photographer Genaro Molina at the 36th Hermosa Ironman, where participants run a mile on the beach, paddle a mile in the ocean and chug beer immediately after getting out of the water.
Have a great day, from the Essential California team
Hailey Branson-Potts, staff writer
Hugo Martín, assistant editor, Fast Break desk
Kevinisha Walker, multiplatform editor
Andrew Campa, weekend writer
Karim Doumar, head of newsletters
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