California Governor Gavin Newsom has confirmed that the state won't be offering incentives on EVs after the September 30 deadline for the $7,500 Federal EV Credit.
‘Sold Us Out,' Gavin Newsom Says
Newsom slammed General Motors Co. (NYSE:GM) as well as its CEO, Mary Barra, for lobbying against California's EV mandate, which aimed at phasing out ICE-powered vehicles by 2035, GM Authority reported on Tuesday. "GM sold us out. Mary Barra sold us out," Newsom said.
Newsom also confirmed that the state's bespoke EV incentives, which it planned on offering to boost EV adoption via "backfill" after the September 30 deadline, wouldn't be possible. "We can't make up for federal vandalism of those tax credit," Newsom said, adding that the state would support charging infrastructure.
GM's Opposition To EV Mandate
The news comes as GM had earlier opposed California's EV mandate, which had been adopted by 11 other states, citing slow demand in the market for EVs at the time.
"Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability," GM had said in an internal email to its employees.
Two-Pronged Strategy
However, the company has since pushed on EVs with the Chevrolet Bolt EV, which is GM's most affordable all-electric offering at $30,000, set to be powered by LFP batteries from Chinese battery giant CATL until 2027, when its partner LG Energy Solutions begins domestic production.
The automaker also recently unveiled 200 fast-charging stations on highways across 40 states as part of a partnership with EVgo Inc. (NASDAQ:EVGO) and Pilot Company. The additions include Colorado, North and South Dakota, Louisiana, Mississippi, South Carolina as well as Wyoming. There have also been broader buildouts in Texas, Missouri and Florida.
Elsewhere, GM has also been investing heavily in ICE-powered vehicles, with the company putting in over $888 million for the company's V-8 manufacturing facility in Buffalo, NY.
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