California Bans Gas-Powered Cars By 2035
California governor Gavin Newsom issued an executive order Wednesday requiring that all new car sales must be zero-emission by 2035. He also is requiring heavy-duty trucks in the state to be zero-emission by 2045. The move would make California the first state with a plan to totally phase out gas-powered vehicles, but the move is not totally unprecedented as 17 countries have committed to a deadline eliminating gas-powered cars.
This is a big deal for the auto industry and its many complementary businesses as California is their biggest market in the U.S. About 11% of American cars are registered in California so this could really shake up the structure of the industry’s biggest players. GM is one example of a company that has placed a significant focus on electric vehicles recently, and this news will only mean that focus will increase.
This executive order comes as California has been devastated by wildfires, which have sparked a larger conversation about the impact of climate change. The state has had a record of being a leader in enacting new regulations of many types, so don’t be surprised if other left-leaning states follow California in the near future.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.