Only 10% of funds remain in California's My First EV fund California program, and the Tesla California $3500 incentive running out is now a real risk for first-time buyers.
The warning comes straight from recent Tesla messages to California customers ordering a Model 3 or Model Y. The program shows just 10% availability left, meaning the first time Tesla buyer incentive could disappear within days.
Why the timing matters
This $3,500 rebate acts like an extra $2,000–$3,000 discount on top of current low-rate financing as low as 0.99% on the Model Y. Tesla has already raised Model Y prices by $1,000 earlier this year and removed most inventory discounts, so this state incentive is one of the stronger deals available right now.
Even if the money runs out, the impact won't be catastrophic, but missing it means losing a meaningful chunk of savings for first-time buyers.
What the Tesla message actually says
Tesla's note to buyers reads that the 10% figure reflects current availability but the exact calculation depends on the My First EV fund California rules. That wording leaves some uncertainty about whether every order will lock in the full amount.
How to lock it in before it vanishes
If you're ordering a Model Y or Model 3 in California, use a Tesla referral code FSD right away to add three months of Full Self-Driving at no extra cost. You can still apply the code before delivery even if your order is already placed.
Check the latest details here: https://denniscw.com/blog/tesla-3500-california-incentive-running-out
For first-time buyer specifics, see this breakdown: https://denniscw.com/blog/california-tesla-3500-first-time-buyer-incentive
Bottom line
The window for the Model Y California rebate 2026 and similar first-time buyer deals is closing quickly. Anyone serious about the $3,500 should order soon and secure the referral code FSD before the fund hits zero.
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