Aug. 30, 2022
California just made its move in the push to get more people into electric vehicles.
Last week, state regulators voted to implement the Advanced Clean Cars II regulation. This rule makes it so that the sales of new gas cars will be banned in the Golden State starting in 2035.
It’s one of the most significant acts of its kind and it will have a massive effect on the auto market.
But what about the rest of the country?
This is something to think about in the context of the Biden administration’s plan to get more EVs out there. Remember, recent bills signed by the president aim to build out EV charging infrastructure and make it more accessible.
Not only that, but the president also signed an executive order just over a year ago that targets 50% EV sales nationwide by 2030.
So what does California's new measure mean for EV adoption in America?
It’s something that could certainly move the needle. California is the largest auto market in the country. It also has its own unique emissions standards for gas-powered cars. Because so many cars get sold in the state, manufacturers often build all of their cars to those emissions specs, even if they aren’t going to California.
California’s influence is such that its emissions standards have been adopted by just over a dozen other states. Together, these states make up 40% of the US auto market.
And while the emissions standards and California’s new action on EVs are two different things, it’s not hard to see why this new set of rules may influence the rest of the US.
Last year, Governor Kathy Hochul of New York signed legislation similar to what passed in California. Officials have said that California’s vote "unlocks New York's ability to adopt the same regulation."
Comments from officials in Vermont and Maine reiterated plans to get more EVs on the roads of those states within the next decade.
Oregon wants at least 90% of new vehicles sold by 2035 to be zero-emission.
Connecticut’s governor recently signed a bill to bolster EV access to the state’s residents.
New Jersey wants to increase not only the number of EVs, but related infrastructure. By 2040, 85% of new light-duty vehicles in that state will be electric.
That’s just a small sample. As you can see, states are being proactive in their push to switch to EVs and California’s new rule may have just supercharged that.
And with California drawing all of this attention, it’s time to remember that these cars need places to charge.
EVs are slowly becoming more common, and many states aren’t keeping up with building enough charging stations to keep the batteries topped off.
That has to change, and quickly.
It’s why EV charging stations were included in the bills the president signed.
And while there are a few different companies that make the chargers, the real investment will be the underlying technology that integrates chargers and other 21st-century energy technology.
You see, EVs are just one part of a much larger plan to overhaul America’s electric infrastructure. The money-making potential there is something that can’t be ignored.
A lot of investment stories in this area only focus on the surface, things like the cars themselves or the companies that make the chargers.
But the real money will be made on the tech that brings those things together with renewable energy, nuclear power, and other areas that focus on getting away from fossil fuels.
One company at the heart of it is set to reap the benefits the most when EVs become more common and the charging network to support them is in place.
It will be one of the biggest investment stories of the near future. Now is the best time to get your investment dollars in place.
People who buy into this play now will be among the big winners when we’re all driving EVs.
Editor, Daily Profit Cycle