Tesla exhausted its allocation under California's MyFirstEV program by Aug. 8, less than a week after the rebate launched on Aug. 3, 2026, highlighting the automaker's dominance in the state's EV market even as national demand for electric vehicles has weakened. The program, backed by $135.5 million in state funding and matching contributions from participating automakers, offers first-time buyers a $3,500 discount on qualifying new EVs and $1,750 on used models after the $7,500 federal EV tax credit expired in September 2025. Tesla limited the incentive to eligible Model 3 and Model Y orders placed on or after Aug. 3 and delivered while funds lasted, and the California Air Resources Board confirmed its share was depleted within the week. That came even though Tesla remained subject to a $50,000 cap for new vehicles and a $25,000 cap for used ones, while California-headquartered Rivian Technologies Inc. and Lucid Group Inc. are exempt. Industry estimates put the five-day drawdown at about $18 million in combined state and Tesla-matched rebates. The rush contrasted with Cox Automotive estimates showing U.S. EV sales fell nearly 28% year over year in June to 74,967 vehicles, while data cited by Electrek showed Tesla registered 45,953 vehicles in California in the second quarter, up 11.8%, and held nearly 57% of zero-emission vehicle registrations through June.