California hopes to lure a new generation to electric cars, with help from rebates, high gas prices

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Set us as preferred With gas prices remaining high due to the war in Iran, California officials are hoping a new rebate program for electric cars can make the math work for buyers at a time when federal incentives have gone away under the Trump administration.California has long been the leader in electric-vehicle adoption, which has continued this year despite the elimination of federal tax credits.The state is now poised to assist drivers with the purchase of their first new or used electric vehicle, starting next month.Experts say the program is meant to provide a shot in the arm for EV sales in the state but might not move the needle much at a time when the supply of electric vehicles is low nationwide.

EV prices remain higher in general than gas-powered cars, and that price has been a barrier to new adoption to those with low or moderate incomes.This month, the California Energy Commission announced that during the second quarter of the fiscal year, April through June, Californians purchased 86,857 new zero-emission vehicles — 75,597 bought EVs, 81 purchased hydrogen fuel-cell vehicles, and 11,179 people bought plug-in hybrids.This represents 19.1% of new-car sales in the state and a 3.3 point jump over the first quarter, the strongest EV share ever recorded without a federal tax credit, said Gil Tal, director of the Electric Vehicle Research Center with UC Davis.

“At $5.77 a gallon, the operating-cost math swings decisively to the EV, about $125 a month for a typical driver, and buyers acted on that price signal within weeks,” he said.When the Trump administration ended the $7,500 federal tax incentive for new electric vehicles in September, Tal said, the percentage of new electric vehicles sold or registered in the state fell to 15.8% in the first three months of the year, its lowest since 2021.The reported rebo...