Assessing California's Proposed Bill to sell only Elective Vehicles by 2035, Pros and Cons

 California legislature is looking to pass a bill that will require all passenger vehicles sold by 2035 to be a zero-emissions vehicle, which really means that only electric vehicles (EVs) will be allowed to be sold in the state by 2035 as those are the only viable zero-emission vehicles. What does this mean for car producers and how will it affect the public?

The only automaker that can be truly ecstatic about this new regulation as of now is Tesla, as they have a near-monopoly on the EV market because of their specialization in EV technology. Every other car company might be less happy with this bill as they will try to play catch up to Tesla and have electric cars ready by 2035 or they risk losing out on one of the biggest car markets in the US, California. The problem that could arise from this rush to make an EV to sell in California is the process may be rushed and the resulting car that would be sold to the public of California will be lacking in quality. Another problem with the bill is that it would require that no new registration can be given to a gas-powered internal combustion engine (ICE) vehicle. However, the price of an EV will need to fall significantly if all socioeconomic levels will be able to buy or register a vehicle by that date. ICE cars are significantly cheaper than electric cars. Therefore, many individuals of lower socioeconomic status can afford used ICE cars, which is a necessity for those individuals as California is a car-dependent state, with millions of people who drive to their place of work every day. This regulation risks hurting lower socioeconomic individuals, who may find themselves unable to afford to meet the new registration requirements of an EV.

California; however, is betting on the fact that their new regulation will create an increase in competition on the EV market that will lead to prices being driven down. Though Tesla has been the dominating name in EV's for the past few years, their success has indicated to others that the EV market is worth entering. Big-name companies like GMC and Ford have announced that they will begin making EV's; Ford announced that it will come out with an electric mustang and F-150. There are numerous new EV makers, like Rivian and Lucid Motors, that will be putting their EVs out in the next year or so. Having one of the biggest car markets in America claim it will only register EVs should increase the incentive for automakers to produce EVs.

California is gambling that their bill will create enough competition that EV prices will be driven down to the point where they become affordable to every socioeconomic class. EVs as of now are still very expensive and prices will need to be driven down significantly to be affordable in every socioeconomic class. If prices fall, as California hopes, then the bill may be considered an environmental, and perhaps even economic success. Yet if prices do not fall enough, then people in lower socioeconomic levels will be hurt, as they can no longer afford to register a new vehicle.  For the sake of those people, this bill better create competition in the EV market. 

Temple, James. “California Looks to Ban Gas Guzzlers – but Legal Hurdles Abound.” MIT Technology Review, MIT Technology Review, 24 Sept. 2020, www.technologyreview.com/2020/09/23/1008840/california-looks-to-ban-gas-guzzlers-but-legal-hurdles-abound/.