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California Restricts Electric Car Rebates
California now restricts plug-in hybrid and electric car rebates to those earning less than $200,000 a year. Rebates for low income buyers are increased.
As of June 30, the California Air Resources Board has proposed restrictions on electric car rebates for wealthy buyers. New data indicates that 26% of electric car buyers in California have income of more than $200,00 a year but only 27% have income below $99,000.
Once the changes go into effect in 4-6 months, customers will not be eligible for Clean Vehicle Rebate Project rebates if their gross annual incomes are above the following thresholds: $250,000 for single filers, $340,000 for head-of-household filers and $500,000 for joint filers.
The California Air Resources Board proposals will change the CVRB incentive program to encourage low income people to buy electric and plug-in hybrid cars. From this point forward, people with incomes less than 300% of the federal poverty limit will be eligible for a $3,000 rebate on a plug-in hybrid, $4,000 on an electric car, and $6,500 on a hydrogen fuel cell car.
According to the Board, the changes were made to target “those most likely to value the rebate the most.” Since 2010, California has issued $217 million in rebates. The Board has proposed that funding for the rebate program be increased from $121 million to $163 million for the fiscal year that began July 1. The state legislature must approve the request for additional funding.
Until the proposed changes are implemented, the current rebates of $1,500 for a plug-in hybrid and $2,500 for an electric car will continue in effect.
The changes to the rebate program will impact companies like Tesla and BMW the most. Low income buyers are more likely to shop for a Nissan LEAF, a Chevy Volt or a FIAT 500e than a Model S or an i3. But all is not lost for high income buyers. They are still eligible for a $5,000 rebate on a fuel cell vehicle, even though it is hard to imagine Tim Cook or Larry Page driving around town in a Toyota Mirai.
>>>> [Infographic] Tesla Model S vs Toyota Mirai Comparison
The trend toward restricting plug-in hybrid and electric car rebates is growing. On July 1, the state of Washington eliminated any incentives for cars costing more than $35,000 and Georgia terminated its rebate program entirely.
Whatever program replaces the federal tax credit of $7,500 after it expires in December, 2016 will likely take a much different approach toward encouraging the sale of alternative fuel vehicles. Some people think the government should be doing more to promote electric charging infrastructure rather than subsidizing individual sales. That policy debate will begin soon. If you have a position on this issue, it’s not too early to let your elected officials know what’s on your mind.
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Tesla China’s domestic sales fell 4.8% in 2025, but it’s not doom and gloom
Despite the full-year dip, Tesla finished the year with record domestic sales in December.
Tesla posted 625,698 retail vehicle sales in China in 2025, marking a 4.8% year-on-year decline as the EV maker navigated an increasingly competitive EV market and a major production transition for its best-selling vehicle.
Despite the full-year dip, Tesla finished the year with record domestic sales in December.
Retail sales slip amid Model Y transition
Tesla’s 2025 retail sales in China were down from 657,102 units in 2024, when the company ranked third in the country’s new energy vehicle (NEV) market with a 6.0% share. In 2025, Tesla’s share slipped to 4.9%, placing it fifth overall, as noted in a CNEV Post report.
Part of the decline seemed tied to operational disruptions early in the year. Tesla implemented a changeover to the new Tesla Model Y in the first quarter of 2025, which required temporary production pauses at Giga Shanghai. That downtime reduced vehicle availability early during the year, weighing on the company’s retail volumes in China and in areas supplied by Giga Shanghai’s exports.
China remained one of Tesla’s largest markets, accounting for 38.24% of its global deliveries of 1.64 million vehicles in 2025. However, the company also saw exports from Giga Shanghai fall to 226,034 units, down nearly 13% year-on-year. It remains to be seen how much of this could be attributed to the Model Y changeover and how much could be attributed to other factors.
Strong December 2025 finish
While the full-year picture showed some contraction, Tesla closed 2025 on a high note. According to data from the China Passenger Car Association (CPCA), Tesla China delivered a record 93,843 vehicles domestically in China in December, its highest monthly total ever. That figure was up 13.2% from a year earlier and 28.3% higher than November.
The surge was driven in part by Tesla prioritizing domestic deliveries late in the year, allowing buyers to lock in favorable purchase tax policies. In December alone, Tesla captured 7.0% of China’s NEV market and a notable 12.0% share of the country’s battery-electric segment.
On a wholesale basis, Tesla China sold 851,732 vehicles in 2025, down 7.1% year-on-year. From this number, 97,171 were from December 2025 alone. Tesla Model 3 wholesale figures reached 312,738 units, a year-over-year decrease of 13.12%. The Tesla Model Y’s wholesale figures for 2025 were 538,994 units, down 3.18% year-over-year.
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Tesla Robovan’s likely first real-world use teased by Boring Company President
As per the executive, the vehicle will be used to move large crowds through Las Vegas during major events.
The Boring Company President Steve Davis has shared the most likely first real-world use for Tesla’s Robovan.
As per the executive, the vehicle will be used to move large crowds through Las Vegas during major events.
Tesla Robovan for high-demand events
During a feature with the Las Vegas Review-Journal, Boring Company President Steve Davis stated that the Tesla Robovan will be used in Sin City once the Vegas Loop expands across the Strip and downtown and the fleet grows to about 1,200 Teslas.
At that scale, Robovans would primarily be deployed during predictable surges, such as game days and large shows, when many riders are traveling to the same destination at the same time.
“The second you have four (passengers) and you have to start stopping, the best thing you can do is put your smallest vehicle in, which is a car. But if you know people are going to the stadium because of a game, you’ll know an hour before, two hours before, that a lot of people are going to a game or a Sphere show, if you are smart about it, that’s when you put a high occupancy vehicle in, that’s when you put the Robovan in,” Davis said.
Vegas Loop expansion
Steve Davis’s Robovan comment comes amid The Boring Company’s efforts to expand the Vegas Loop’s airport service. Phase 1 of rides to Harry Reid International Airport began last month, allowing passengers to travel from existing Loop stations such as Resorts World, Encore, Westgate, and the Las Vegas Convention Center.
Phase 2 will add a 2.2-mile dual-direction tunnel from Westgate to Paradise Road. That section is expected to open within months and will allow speeds of up to 60 mph on parts of the route, while expanding the fleet to around 160 vehicles.
Future phases are expected to extend tunnels closer to airport terminals and add multiple stations along University Center Drive. At this point, the system’s fleet is expected to grow close to 300 Teslas. The final phase, an underground airport station, was described by Davis as the system’s “holy grail.” This, however, has no definite timeframe as of yet.
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Tesla seeks engineer to make its iOS Robotaxi app feel “magical”
It appears that Tesla is hard at work in ensuring that users of its Robotaxi service are provided with the best user experience possible.
Tesla is hiring an iOS Engineer for its Robotaxi app team, with the job posting emphasizing the creation of polished experiences that make the service not just functional, but “magical.”
Needless to say, it appears that Tesla is hard at work in ensuring that users of its Robotaxi service are provided with the best user experience possible.
Robotaxi App features
As observed by Tesla community members, Tesla has gone live with a job listing for an iOS Engineer for its Robotaxi App. The job listing mentions the development of a “core mobile experience that enables customers to summon, track, and interact with a driverless vehicle. From requesting a ride to enabling frictionless entry, from trip planning to real-time vehicle status and media control.”
Interestingly enough, the job listing also mentioned the creation of polished experiences that make the Robotaxi more than just functional. “You will take full ownership of features—from architecture design to robust implementation—delivering delightful and polished experiences that make Robotaxi not just functional, but magical,” Tesla noted in its job listing.
Apple’s “magical” marketing
Tesla’s use of the word “magical” when referring to the Robotaxi app mirrors the marketing used by Apple for some of its key products. Apple typically uses the word when referring to products or solutions that transform complex technology into something that feels effortless, simple, and natural to daily life. Products such as the AirPods’ seamless pairing with the iPhone and FaceID’s complex yet simple-to-use security system have received Apple’s “magical” branding.
With this in mind, Tesla seems intent on developing a Robotaxi app that is sophisticated, but still very easy to use. Tesla already has extensive experience in this area, with the Tesla App consistently being hailed by users as one of the best in its segment. If Tesla succeeds in making the Robotaxi app worthy of its “magical” branding, then it wouldn’t be a surprise if the service sees rapid adoption even among mainstream consumers.
Tesla China’s domestic sales fell 4.8% in 2025, but it’s not doom and gloom
Tesla Robovan’s likely first real-world use teased by Boring Company President
