EVs Are Now Mandatory

Written by Jason Simpkins
Posted August 29, 2023

Last year, California unveiled the most drastic EV mandate in the United States.

It’s called the Advanced Clean Cars II rule, and it aims to ensure that by 2035 every single new car and light truck being sold in California is zero-emissions.

A lot of states and even the federal government have offered incentives to accelerate EV adoption, but California’s rule is far more than that. 

It’s an edict that will greatly reduce the number of vehicles available to Californians and drive some car companies out of the state entirely. 

And now, New Jersey is following suit. 

That is, last month, the Garden State copied California’s legislation and hopes to have it enacted by the end of this year. 

If it succeeds, the new law would require manufacturers to start selling zero-emissions cars and trucks beginning with 2027 models, or in 2026.  

Furthermore, even if New Jersey doesn’t adopt the ACCII mandate by the end of 2023, car manufacturers will still have to adopt the standard by the 2028 model year. 

That means more than half of all new cars sold would have to be zero-emissions.

Either way, any car company doing business in the state will be banned from selling cars with gas-powered engines by 2035.

Now, that may seem like a long way off, but it’s really not. And when you look at the full list of targets, you can see just how fantastic these goals are:

NJ EV Sales Goals

Indeed, a scant 1.5% of the approximately 6 million total vehicles registered in New Jersey are EVs. And at the end of last year, electric vehicles made up just 8% of new vehicle registrations.

But according to this table from the New Jersey Department of Environmental Protection, that figure must rise to 35% by 2025. 

That means New Jersey needs to quadruple its EV sales in just two years. 

Then it has to keep that rate of adaptation going with massive year-over-year jumps throughout the next decade.

It’s going to be very interesting to see how that plays out for them.

But to help hurry this transition along, the state is also offering $4,000 of incentives for EV purchases. 

It’s also working to increase the number of charging stations available to drivers, with $10 million for the DEP to install charging stations at multi-unit homes, workplaces, and public locations.

That dovetails with a broader federal initiative under President Joe Biden to grow the EV charging network nationwide.

However, Biden’s agenda is at least a little more realistic as it calls for EVs and hybrids to make up half of new vehicle sales by 2030, up from roughly 6% right now.

And even that may be a little optimistic, as many independent researchers like EVAdoption forecast EVs making up just about 30% of new U.S. sales by 2030.

EV sales forecast 2030

That’s probably more accurate, regardless of these draconian new laws being passed.

Still, the laws will have an impact, and EV sales are expected to increase significantly over the next decade.

However, if investors want to profit, EV manufacturers may not be the best play.

Instead, you might look to profit from a little-known program that lets investors draw income from EV charging stations.

It’s called “Plug-in Payouts,” and it generated $563.3 million in income for investors last year... 

And that figure is poised to skyrocket as more and more EVs hit the road. 

But if you want to get in on the action, you have to act fast. 

Get the details here.

Fight on,

Jason Simpkins Signature

Jason Simpkins

follow basic@OCSimpkins on Twitter

Jason Simpkins is an Editor of Wealth Daily and Investment Director of Secret Stock Files, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

Want to hear more from Jason? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on. 

*Follow Angel Publishing on Facebook and Twitter.

Banking Crisis Just Kicked into High Gear