By Reagan Steele – Business & Economic Policy Writer
While California leaders continue to insist the state must move forward with a 2035 ban on the sale of new gas-powered vehicles, Europe is moving in the opposite direction.
Last week, senior European Union lawmakers confirmed plans to scrap the EU’s proposed 2035 ban on new combustion-engine vehicles, a major reversal after years of aggressive electric-vehicle mandates. The shift was driven by concerns from Germany and other industrial countries that electric vehicle demand has not materialized at the scale policymakers expected, placing strain on automakers, workers, and supply chains.
EU officials emphasized the need for technological openness, acknowledging that millions of combustion-engine vehicles will remain on the road well past 2035 and that market demand, not political mandates, should guide the transition.
California, however, appears determined to go it alone.
Washington Pushback and Newsom’s Response
In May, the U.S. House of Representatives voted to block California’s Advanced Clean Cars II rule, which would prohibit the sale of new gas-powered vehicles statewide by 2035. House Republicans argued the policy limits consumer choice and imposes costs on working families and manufacturers.
Governor Gavin Newsom responded by framing the issue as partisan, stating:
“Trump Republicans are hellbent on making California smoggy again. Clean air didn’t used to be political.”
The remark sidesteps a growing reality. Resistance to the mandate is not confined to conservative lawmakers in Washington. It is increasingly shared by regulators, automakers, and consumers across Europe, hardly a bloc known for climate skepticism.
EV Targets Falling Short
Even with generous federal incentives, California has already struggled to meet its own electric-vehicle adoption goals.
Electric vehicles cost more than gas-powered cars, making subsidies a central pillar of the state’s strategy. With federal EV tax credits set to expire, state officials now acknowledge California will likely miss its emissions targets unless Sacramento intervenes with billions in additional state subsidies.
EV sales have softened, particularly among middle-income buyers. Tesla registrations in California have dropped sharply compared with previous years, and overall EV adoption has fallen short of projections.
The state’s response is not to reassess the mandate, but to replace lost federal incentives with new state spending, potentially funded through California’s cap-and-trade program, which already funnels billions of dollars annually into climate initiatives.
A Policy Built for the Affluent
Data consistently show that electric vehicle ownership remains concentrated among higher-income households, many of whom treat EVs as secondary or tertiary vehicles rather than all-purpose transportation.
For working Californians, renters, rural commuters, tradespeople, and families who rely on a single vehicle, concerns about upfront cost, charging access, range limitations, and electricity prices remain unresolved. These are practical objections, not ideological ones.
Europe’s reversal reflects a recognition that forcing consumers into expensive technology before it is economically competitive carries political and economic risk. California’s leadership, by contrast, continues to frame skepticism as hostility to clean air rather than a response to affordability and feasibility.
The Wrong Side of the Trend
For years, California has justified its aggressive mandates by claiming it is leading the future. But as Europe reconsiders its timeline and Congress moves to block California’s authority to enforce a gas-car ban, the state increasingly looks isolated, not visionary.
Electric vehicles will continue to improve, and adoption will grow as prices fall and infrastructure expands. But history suggests that technological transitions succeed when consumers choose them, not when governments attempt to mandate outcomes regardless of market readiness.
At some point, the question becomes unavoidable. If Europe is stepping back, and California is falling short even with subsidies, is it time for Governor Newsom to stop tilting at windmills and acknowledge that the state’s 2035 ban may be out of step with both economic reality and public willingness?
Reagan Steele
Reagan Steele covers financial markets, housing, and local business trends. He smokes too much, sleeps too little, and refuses to speculate.
