California Governor Gavin Newsom signed an executive order on Monday that will ban the sale of gasoline and diesel-powered cars by 2035. In an effort to reduce the earth’s carbon footprint, Newsom’s hope is that California can be the first of many states to move away from the internal combustible engine cars.
This comes off the heels of Tesla CEO Elon Musk stating that by 2023, Tesla will be rolling out a new, affordable model at a price point of $25,000.
The executive order tells the California Air Resources Board to develop a plan that would require 100 percent zero-emissions personal and commercial use vehicles to be phased out by 2035 and as many medium-duty and heavy-duty vehicles deemed feasible by 2045. Hakan Samuelsson, CEO of Volvo, said that by 2035 “we could be having a serious discussion about banning the internal combustion engine, and not just in California.”
California is the largest new car market in the United States, with a total of 1.8 million vehicles sold in 2019.
China has also begun the car regulation process to alleviate greenhouse-gas emissions from cars while cultivating the electric vehicle market. For years, the city of Beijing has offered subsidies and tax breaks for its population to buy electric vehicles, put a limit on new conventional-vehicle registrations, and developed a domestic electric-car and battery industry that is competing with Western manufacturers.
In 2019, 2.8% of car sales worldwide were electric vehicles. However, by 2035 when the California ban goes into effect, electric cars are expected to be approximately 50% of all cars sold in the world, and 80% by 2050 according to the investment bank Morgan Stanley.
It is entirely possible that governments could take a page out of Beijing’s book, and offer tax breaks and incentives for people to move away from their combustible engine cars and drive the movement towards having an all-electric fleet of vehicles on the road.
While Tesla has been on the market for almost a decade now, the move towards electric vehicles has been a very slow process. With the California ban, the process could be expedited and more people could be moving in the electric direction soon.
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Jeffrey is a graduate from the University of North Texas and joined the Empower Brokerage marketing team in 2020. He is the social media manager for empower brokerage, in addition to writing blogs and doing various campaigns. LinkedIn profile