California is known to be one of the more progressive states in the US, with liberal ideologies being popular in the area. One of the things at the forefront for this side of the political spectrum is climate change and ways to slow its impact, and California has had bold proposals to address it. Many of them exceed what Europe even wants to do, and it makes sense due to how large California is in terms of population, area, and economic impact.
Governor Gavin Newsom has been ambitious when it comes to legislation, and California passed a major plan that will have a major impact on renewable energy companies. Yesterday, they approved regulations that would ban the sale of gas-powered cars starting in 2035, which is a major step forward in the transition from gas to EVs. The move has received some support from businesses like GM, but the viability is being questioned the most as 2035 is very aggressive. EV infrastructure is lacking at the moment, and although President Biden’s infrastructure bill along with other programs, will help build that out it’s hard to say if that could happen by 2035. Infrastructure will be a lot better by then, but it might not be enough to satisfy this big of an order. Out of car sales in California this year, 16 percent of them have been electric, which greatly outpaces the national average. California’s new regulations don’t just call for that number to reach 100 percent by 2035 but reach new intervals in 2026 and 2030 to ensure it is gradually occurring. This opens up business for the already growing EV market, and some winners and losers will start to come out of this.
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.