California's electric vehicle market took a sharp downturn last year, with drivers purchasing roughly 57,000 fewer vehicles than the same period in 2025, according to data from the California New Car Dealers Association. This is the single worst quarter for the EV sector since 2021. The decline was caused by the cancellation of a $7,500 tax credit for EV shoppers. However, this could be good news for Gov. Gavin Newsom and his proposed $200 million EV rebate program for first-time buyers. The data supports Newsom's push to launch the program by July 1 without any strings attached. There are also concerns about how rigorously enforce the first time the state should enforce this requirement and if it should be focused on low-income drivers who need more help affording pricier electric models.