EPA Approves California's Gas Car Ban

Eleven other states and Washington D.C. plan to adopt similar rules, including New York, Massachusetts, and Oregon. Together, these states represent a significant portion of the U.S. auto market, making compliance challenging for automakers. California alone is the largest car market in the country.

Currently, 25% of vehicles sold in California are electric, with plug-in hybrids accounting for 4%. However, standard hybrids, which are not counted under the new regulations, make hitting the 2026 target uncertain for other states. The policy's future also faces political hurdles. Former President Trump, if re-elected, has pledged to revoke California's authority to enforce such mandates, potentially leading to legal battles and regulatory uncertainty.

This uncertainty could disrupt the auto industry, which is already grappling with the financial strain of scaling electric vehicle production.