Tesla Model Y, 3 eligible for $2,000 California rebate after price drops
The Tesla Model Y and Model 3, California’s #1 and #2 best-selling vehicles, are once again eligible for California’s $2,000 electric car rebate after steep price drops last month which bring them back under the MSRP cap for eligibility.
California’s Clean Vehicle Rebate Program has issued over a billion dollars in total rebates since the inception of the program. The money comes from the California Air Resources Board which gets much of its funding from California’s cap-and-trade program.
It has been modified multiple times to add criteria, one of which is a limitation on the purchase price of the vehicle.
Currently, that limitation stands at a base MSRP of $45,000 for cars and $60,000 for “large vehicles” (SUVs, minivans and pickups).
Tesla vehicles previously qualified for rebates under this program, but between continuous price hikes over the past couple years and new MSRP limitations on California’s rebate program, they had been ineligible since March 15, 2022 when Tesla raised MSRP beyond the price caps.
We checked two weeks ago and they were still not included on the site, even after last month’s price drops, as Tesla had not yet re-applied for eligibility for the program.
However, it looks like Tesla applied and was accepted now, as California has now updated the CVRP website to officially add Tesla’s best-selling offerings (and the two best-selling cars in California) back into eligibility for the program after last month’s price drops.
This change is somewhat retroactive, as well. The CVRP website has a topic specifically about the Tesla Model 3 and Model Y, stating that vehicles ordered on or after January 12 (the day of the price drops) can still apply for a rebate within 90 days of registering the vehicle. So if that’s you, then don’t wait – the clock starts from your registration date, not from today.
The standard rebate for both vehicles is $2,000, though every vehicle can also qualify for an “increased rebate” for lower-income buyers, defined as 400% of the federal poverty level. For those buyers, the current total rebate is $4,500, though that is separately slated to raise to $7,500 on February 28.
Other limitations apply, such as an income limit of $135,000 for single filers and $200,000 for joint filers. So low-income buyers get increased rebates, and high-income buyers get no rebate at all. CARB hosts an FAQ about the program if you have any other questions.
The Tesla Model 3 and Model Y both currently qualify for the full federal EV tax credit after recent price drops and a change in IRS guidance which raised that credit’s MSRP cap to $80,000 for the Model Y.
Electrek’s Take
Some may question whether the government needs to be subsidizing the price of two cars which are already the best-selling ones in the state. But these rebates aren’t specific to Tesla, they’re for all EVs, and the program has obviously been effective, given that California is the top EV market in the nation and continues to lead the country in adoption and is one of the largest EV markets in the world.
And the subsidy isn’t from “taxpayers,” but rather largely from California’s cap-and-trade fund, which punishes polluting companies by forcing them to pay penalties when they go over their allocated amount of emissions per year. This fund has been effective at reducing emissions in California, though the state could go further.
And, frankly, nobody ever questions the massive subsidies which California’s former best-selling vehicles still get. The IMF estimates that, globally, dirty energy gets $5.3 trillion in subsidies every year. Studies have shown that each gallon of gasoline benefits from around $3.80 in displaced costs, in the form of increased health costs and environmental damage that all of us have to pay for.
So, lets look at the previous best-selling car in California, the Toyota Camry, and see how much subsidy it would get over its lifetime.
If a Camry lasts 200,000 miles – perhaps a high estimate, but it’s known as a reliable car, so let’s go with it – then that means it will consume 6,250 gallons of gasoline, with its 32mpg combined EPA rating.
So multiply that 6,250 gallons by the $3.80 in displaced health and environmental costs per gallon, and you have $23,750 in subsidy over the lifetime of that vehicle. But that subsidy isn’t being paid by the polluters themselves, via a cap-and-trade fund like the EV incentive is, it’s being paid by your lungs. It’s making your life worse, making you spend more time in the hospital, making you less productive, making your health insurance premiums higher, making your environment less beautiful and able to support human and animal life.
Meanwhile, EVs are doing the opposite of that, and are making California healthier, as a new and completely unsurprising study shows.
So yes, I do think it is more than justifiable to take money out of the pockets of polluters and put it into the hands of buyers who are making a cleaner choice, even if that choice is already a popular one.
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Burlingame, California-based Peak Energy just scored a huge win for sodium-ion batteries. The company announced a multi-year deal with utility-scale battery storage developer Jupiter Power to supply up to 4.75 GWh of sodium-ion battery systems between 2027 and 2030.
Under the agreement, Peak will deliver 720 MWh of storage in 2027 – the largest single sodium-ion battery deployment announced so far. The deal also includes an option for an additional 4 GWh of capacity through 2030, bringing the total contract value to more than $500 million.
Sodium-ion vs. lithium-ion
Peak Energy says its sodium-ion batteries degrade less over time and have lower operations and maintenance costs than lithium-ion systems. Because the batteries don’t degrade as quickly, operators don’t need to add more capacity later in a project’s life to maintain performance. They also use a fully passive cooling system that eliminates pumps, fans, and other components used in lithium-ion setups, reducing maintenance and safety risks.
The company claims its grid-scale sodium-ion system uses up to 97% less auxiliary power, offers about 30% better cell degradation performance over 20 years, and comes with a lower total cost of ownership.
Why this deal matters
The agreement marks a significant step forward for the emerging sodium-ion sector, which has been gaining momentum as a safer and lower-cost alternative to lithium-ion for long-duration and grid-scale energy storage. It also underscores the growing effort to build a domestic sodium-ion battery supply chain in the US.
“From day one, we’ve believed sodium-ion will be the winning technology for grid-scale storage, which is essential to meet rising demand from hyperscalers and AI,” said Landon Mossburg, Peak Energy’s CEO and cofounder. “Deploying the world’s largest sodium-ion energy storage system with one of the nation’s top independent power producers proves that sodium is ready for today and will dominate the future.”
Mike Geier, CTO at Jupiter Power, said the company is “excited to support domestic battery energy storage manufacturing as we continue to increase the deployment of firm, dispatchable energy when and where it’s most needed,” and called Peak’s approach to sodium-ion “a potential game changer for the industry.”
Read more: The US’s first grid-scale sodium-ion battery is now online
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![The new 2026 Lexus ES is an upgrade in just about every way [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/11/new-2026-Lexus-ES-EV.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Lexus claims the new ES “takes sedan styling, luxury, and refinement to a higher level” with a complete redesign. With the 2026 ES arriving soon, Lexus offered a closer look at the upgrades inside and out.
The new 2026 Lexus ES debuts in EV and hybrid forms
The eighth-gen ES is bringing more than a sharp new style. Lexus overhauled its flagship sedan from the ground up for the 2026 model year, which will include battery electric (BEV) and hybrid (HEV) powertrain options.
Inspired by the radical LF-ZC show car, the 2026 ES has been fully redesigned with what Lexus calls the “Experience Elegance and Electrified Sedan” concept, aimed at further refining the driving experience.
The new design centers on a redesigned “spindle body” that extends from the hood to the bumper. It also features a redesigned grille, replacing the signature Lexus spindle grille as the brand looks for a new identity in the electric era.
Inside, the new 2026 ES features the latest version of the Lexus Interface multimedia system. The setup includes a 14″ touchscreen with wireless Apple CarPlay and Android Auto, and a 12.3″ driver display cluster.
Based on the redesigned TNGA GA-K platform, the new ES will be available in battery electric (BEV) and hybrid (HEV) powertrains for the first time.
The 2026 Lexus ES lineup consists of two models: the ES 350e, a front-wheel-drive (FWD) model, and the ES 500e, an all-wheel-drive (AWD) model.
Lexus expects the ES 350e to have a driving range of 300 miles when fitted with 19″ wheels, while the ES 500e has an estimated driving range of 250 miles.
Both the ES 350e and 500e feature a built-in NACS port to recharge at Tesla Superchargers. Using DC fast charging, it can recharge from 10% to 80% in about 30 minutes under “ideal conditions,” according to Lexus.
With its debut just around the corner, Lexus offered a closer look at the new 2026 ES inside and out in a new video.
Lexus has yet to announce prices, but the redesigned ES is expected to start at about $45,000 to $50,000, or slightly more than the outgoing model.
After launching the upgraded RZ earlier this month, Lexus said the ES would be next. It’s expected to go on sale in Spring 2026.
What do you think of the redesigned 2026 ES? Do you like the new Lexus design? Let us know your thoughts in the comments below.
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Tesla has launched a new version of the Model Y in China, and it’s achieving an impressive new range rating – thanks to a new battery cell from South Korea’s LG.
The new variant, a five-seat, rear-wheel drive long-range model, has been released with an 821-km range based on China’s CLTC standard.
While the CLTC rating is known to be optimistic, 821 km (about 510 miles) is an impressive number and the longest range Tesla has offered in its Model Y lineup to date, which is going to help it be more competitive in the Chinese market.
This new extended range Model Y version is made possible by using the 78.4-kWh ternary lithium-ion battery pack from LG Energy Solution, the same pack found in the also recently launched 830-km range Model 3 variant.
The new long-range RWD Model Y starts at RMB 288,500, which translates to just over $40,500 USD.
The launch comes at a critical time for Tesla in China, which has seen its sales slump in recent months. The automaker recorded its lowest monthly sales in October since November 2022, falling out of the top 10 list for new energy vehicle (NEV) sales.
That’s despite a continued surge in electric vehicle sales in China. Tesla is not benefiting from it amid strong competition.
According to local Chinese media reports, the new 821-km Model Y is already gaining traction with some anecdotal reports of enthusiasm at Tesla stores.
The reports are partly supported by Tesla quickly extending delivery timelines from 2-4 weeks to 4-6 weeks just hours after launch.
Electrek’s Take
I think this is going to be suitable for a decent short-term bump in demand, but it’s still on the expensive side for the Chinese market.
For example, now the Model Y beats the Xpeng G6’s max range of 755 km, but the G6 with this range costs 234,900 RMB (approximately $32,900 USD), which is significantly cheaper.
Every 10,000 RMB tranche lower means a lot more demand in China.
Tesla needs to launch its new “standard” versions to start making a difference with demand long term in China.
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