California Bans Gas-Powered Cars By 2035 🚗

California governor Gavin Newsom issued an executive order Wednesday requiring that all new car sales must be zero-emission by 2035. He also is requiring heavy-duty trucks in the state to be zero-emission by 2045. The move would make California the first state with a plan to totally phase out gas-powered vehicles, but the move is not totally unprecedented as 17 countries have committed to a deadline eliminating gas-powered cars.

This is a big deal for the auto industry and its many complementary businesses as California is their biggest market in the U.S. About 11% of American cars are registered in California so this could really shake up the structure of the industry’s biggest players. GM is one example of a company that has placed a significant focus on electric vehicles recently, and this news will only mean that focus will increase.

This executive order comes as California has been devastated by wildfires, which have sparked a larger conversation about the impact of climate change. The state has had a record of being a leader in enacting new regulations of many types, so don’t be surprised if other left-leaning states follow California in the near future.

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.

Originally published at on September 24, 2020.

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