(Bloomberg) — California just started the clock on a future that a few years ago would’ve been unthinkable: dealerships full of nothing but zero-emissions cars.
On Wednesday, Governor Gavin Newsom ordered regulators to phase out the internal combustion engine and ban the sale of all new gasoline-fueled cars after 2035. With that, California became the first state in America to impose such a prohibition and delivered the biggest jolt yet to automakers already under pressure to give up fossil fuels and deliver a new generation of electric vehicles.
While for now the industry depends on gasoline-powered SUVs and pickups for most of its profit, traditional automakers are investing billions of dollars in electrification and announcing new EV models — with startups such as Rivian Automotive and Lucid Motors Inc. right on their heels. California’s ban ups the ante.
“There’s an arms race going