Sometimes, my ability to foresee the future via the quips I make at Legal Insurrection scares me.Legal Insurrection readers will recall my continuing saga of the collapse of the state’s California-style electric vehicle (EV) mandates.In the summer of 2024, I reported that Connecticut opted to forgo adopting these requirements. Additionally, Virginia Gov. Glenn Youngkin paused his state’s EV mandate at the end of the year.Just last month, Maryland’s governor delayed its sad attempt to be East Coast California via a similar mandate. More recently, Vermont Governor Phil Scott issued an executive order halting the enforcement of the state’s EV sales mandate.In the piece on Vermont, I noted that California Gov. Gavin Newsom would like to end the original program in his continuing effort to rebrand himself as a “centrist Democrat” ahead of the 2028 presidential election cycle.Well, those rules are likely to be going away…but perhaps not quite the way I had foreseen.However, Newsom may be spared from acting alone to gut these disastrous requirements, with all the ensuing hysteria he would get from climate cultists. General Motors (GM) has recently shifted its stance and is now actively opposing California’s mandate to ban the sale of new gasoline-powered vehicles by 2035.The automaker is lobbying Congress to revoke the federal waiver that allows California to enforce stricter emissions standards, which seven other states have adopted. This marks a significant reversal for GM, which previously aligned its EV goals with California’s policies.
The automaker shared its stance in an email sent to thousands of its salaried employees last week. Here is what the email read:
“Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability.”
General Motors Company (NYSE:GM), once a strong supporter of California’s ambitious ban on gas-powered vehicle sales by 2035, is now lobbying against it. The company is urging employees to push Senators to overturn a waiver allowing California to set stricter emissions rules, which have been adopted by 11 other states. Although GM had previously aligned its own EV goals with the state’s, slowing EV demand and market challenges have prompted a shift.
EV sales are falling behind expectations—even in California—and automakers, including General Motors Company (NYSE:GM) and Ford, are pulling back on electric vehicle plans. GM has scrapped its goal of building 400,000 EVs by mid-2024 and delayed key launches as consumers turn to cheaper alternatives and federal tax incentives face potential rollbacks. GM has surged by nearly 12% in the past 12 months.
Every other aspect of the EV mandate I have described as problematic is being cited as the reason for GM hitting reverse on its decision.
The electric market is starting to slow, and sales are weakening. EV sales fell 5% in April even as the broader auto market grew by 10%. EVs represent just 7% of the overall U.S. car market. Even in California, the leader in electrification, EVs account for only 20% of the car market, significantly below the state’s 2026 target of 35%.Affordability remains a significant concern. Federal tax incentives that historically boosted EV sales are under threat in Congress, and many automakers are scaling back or delaying EV production plans in response. Dealers nationwide, especially in mandate-aligned states, are reporting difficulty moving EV inventory even with manufacturer and government support.While some EV makers like Tesla and Rivian remain committed to long-term electrification, GM’s recent pivot highlights the broader market reality. Without sustained consumer demand and supporting infrastructure, overly ambitious regulatory targets will outpace what the industry and American car buyers can reasonably deliver.
I recall when Toyota Motor chief Akio Toyoda said that he remains skeptical of moving to only produce REV and that most automakers agreed with him. That was back in 2022, and most of those automakers decided to remain silent and go along with the green energy fever dreams.
The preference cascade has started, and it’s just a matter of time before the only market forces impacting car sales are consumer preferences based on their own mobility and economy needs.
Meanwhile, more coins are going in my Legal Insurrection coin jar.
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