Tesla Inc. (NASDAQ: TSLA) has officially exhausted its allocated funds for California’s MyFirstEV rebate program, confirming that the $3,500 incentive for eligible Model 3 and Model Y buyers is no longer available. The automaker stated on its support page that the funds were fully depleted by August 8, 2026, just four days after the program launched on August 3, 2026. This rapid depletion underscores strong consumer demand for the state-sponsored discount, which targets first-time electric vehicle buyers in California.

The MyFirstEV program, launched by Governor Gavin Newsom, offers a $3,500 instant discount on new EVs and a $1,750 discount on used EVs. Tesla specified that prospective buyers must have placed their orders on or after August 3, 2026, and taken delivery while funds were still available to qualify. As of Friday, August 7, only 30% of the allocated funds remained, according to influencer Sawyer Merritt, who tracked the program’s progress on X. By Saturday, the company confirmed the allocation was completely used up.

Program Status and Eligibility

Tesla joins competitors Rivian Technologies Inc. (NASDAQ: RIVN) and Lucid Group Inc. (NASDAQ: LCID) in participating in the limited-run scheme. However, unlike Tesla, which saw its specific allocation vanish within days, the broader program remains active for other manufacturers until state-wide funds are depleted. Vehicles must be registered and delivered in California to qualify for any remaining benefits.

Governor Newsom Highlights Clean Energy Progress

Governor Newsom hailed the rapid uptake as evidence of California’s successful clean energy strategy. In a post on X, the Governor’s Press Office noted that the state has invested $6 billion in EV infrastructure and sold 2.5 million cumulative EVs since 2019. Newsom also highlighted that California has deployed 21,000 megawatts of battery storage, up from 770 megawatts when he took office in 2019, making it the second-largest utility-scale battery storage market globally behind China.

The governor emphasized that the state has not experienced a "flex alert"—a voluntary power conservation call—in the last four years, attributing this stability to increased battery storage capacity. This push is framed as a countermeasure to federal policies criticized by Senator Adam Schiff (D-CA) for slowing EV adoption.

Market Reaction

Tesla shares rose 1.05% to $332.02 during pre-market trading on Monday, reflecting positive sentiment around the strong consumer demand. Despite the stock’s upward movement, Benzinga Edge Rankings indicate that Tesla scores poorly on Momentum and Value metrics, though it maintains satisfactory Growth and Quality scores. The stock currently fails to provide a favorable price trend in the short, medium, and long term.

What the Numbers Show

The rapid exhaustion of Tesla’s rebate funds within four days suggests that price sensitivity remains a key driver for EV adoption among first-time buyers. With competitors like Rivian and Lucid still participating, the disparity in fund depletion rates may indicate Tesla’s stronger brand recognition or higher baseline demand for its compact SUV and sedan models compared to niche rivals.

Tesla Inc (NASDAQ: TSLA) has begun operations at its new energy storage facility in Brookshire, Texas, marking a significant expansion in its non-automotive revenue streams. The plant, which started production 16 months after groundbreaking, is designed to manufacture 50 gigawatt-hours of Megapack 3 capacity annually. This operational milestone coincides with broader developments in Tesla's artificial intelligence infrastructure and policy landscape, including a major allocation of compute resources toward SpaceX and participation in a California state incentive program.

Energy Storage Expansion

The Brookshire facility addresses growing demand from utilities, renewable-energy developers, and data centers for batteries capable of storing power and releasing it during peak demand periods. The commencement of operations signals Tesla's ability to scale its energy storage division independently of its vehicle manufacturing cycles. The 50 gigawatt-hour annual capacity is specifically dedicated to the Megapack 3 product line, reinforcing Tesla's position in the grid-scale storage market.

AI Compute Allocation

Elon Musk provided details on the distribution of artificial intelligence compute resources from the upcoming Terafab semiconductor facility. Responding on X, Musk estimated that 75% of the facility's output would be utilized for SpaceX's AI spacecraft, while 25% would be allocated to Tesla's Optimus robot project. Musk noted that the facility is expected to create over 3,000 jobs in Texas during phase 1 of a planned 10-phase rollout. This allocation highlights a strategic prioritization of aerospace AI capabilities over terrestrial robotics in the near term.

Compute Distribution Breakdown

Policy and Incentives

Tesla confirmed its participation in a limited-run electric vehicle incentive program in California. Eligible buyers may qualify for a $3,500 incentive on new inventory purchases of Model 3 and Model Y vehicles. To qualify, vehicles must be registered and delivered within California. This state-level incentive operates separately from federal policies, following President Donald Trump's administration ending the $7,500 federal tax credit for EVs upon his second term inauguration.

Autonomous Driving Strategy

Tesla AI Chief Ashok Elluswamy outlined the company's approach to Full Self-Driving (FSD) development, emphasizing smarter learning of users' implied preferences rather than relying on user overrides. Elluswamy described features like Max Speed control as an "anti-pattern," aligning with feedback from enthusiasts such as David Moss, who advocated against such controls on future AI3 or AI4 vehicles. This strategy suggests a shift toward more adaptive autonomous systems that internalize driving styles without manual intervention.

What the Numbers Show

The divergence in resource allocation between Tesla's automotive/robotics division and SpaceX indicates a capital-intensive focus on aerospace AI. With three-quarters of the Terafab output directed to SpaceX, the immediate growth driver for Musk's AI ambitions appears to be orbital rather than terrestrial. Simultaneously, the activation of the 50 GWh Megapack 3 capacity provides a tangible near-term revenue stream from energy storage, diversifying Tesla's earnings beyond vehicle sales amid shifting federal EV incentives.