Tesla (NASDAQ:TSLA)
On Thursday, the California Air Resources Board (CARB) is scheduled to vote on whether or not to approve regulations that would mandate that all new vehicles sold in the state by 2035 must be either electric or plug-in electric hybrids and might also have gasoline engines.
Tesla (NASDAQ:TSLA), an electric car manufacturer, has advocated for a more rapid transition to electric vehicles. However, an industry group representing other automakers has stated that the proposed laws will make producing their vehicles more difficult.
In September 2020, California Governor Gavin Newsom initially stated his administration’s goal to completely phase out gasoline-powered automobiles by 2035. The proposed regulations, which will establish incrementally stricter standards for zero-emission vehicles beginning in 2026, will take effect only if the Biden administration gives its blessing after the board votes in favor of them.
Since federal regulations on vehicle emissions don’t impose annual criteria for zero-emission automobiles and only go through 2026, California is ahead of the game. Over a dozen other states have adopted California’s strict zero-emissions regulations.
According to the new CARB regulation, by 2035, automakers will be able to sell as many as 20% plug-in hybrids (PHEVs).
In a July 26 submission with CARB, Tesla, which makes only electric vehicles, argued that the board should mandate 100% zero-emission vehicles by 2030 and increase the stringency of the requirement by “limiting the use of polluting PHEVs in annual compliance.”
According to CARB’s proposal, plug-in hybrids must have an all-electric range of at least 50 miles by 2025. Plug-in hybrids must have an all-electric range of at least 10 miles.
By 2035, CARB expects 183,000 of the approximately 2 million vehicles sold in California to be plug-in hybrids.
Tesla (NASDAQ:TSLA) also proposes removing the mandate that all new vehicles come equipped with charging adapters and cords, which many buyers may never use.
Also, Tesla (NASDAQ:TSLA) has questioned the CARB’s battery endurance criteria, claiming they “would create increased tailpipe emissions by damaging the rate of electric vehicle adoption through the imposition of high new costs and designs with reserved battery capacity.”
General Motors (NYSE:GM), Volkswagen (ETR:VOWG p), Toyota, and other manufacturers are members of the Alliance of Automotive Innovation, which claims the new CARB rule “needs tripling EV sales in only three model years.”
The automobile association predicted that most states will follow California’s lead and enact similar regulations “Five- to sevenfold growth in EV sales is needed in the same term” and said, “even in California, and especially in the early years, compliance with the requirements will be extremely tough.”
Seventeen states in the United States have signed on to adopt California’s tailpipe emissions regulations, while fifteen others have supported the Golden State’s zero-emission vehicle mandates.
Featured Image: Megapixl @Jshanebutt
Author Shariq Khan 
