The State of Maryland followed in the footsteps of California today by banning all new gas vehicle sales by the model year 2035.
On Monday, the State of Maryland’s Air Quality Control Advisory Council unanimously voted to approve a regulation that would see an implementation of California’s vehicle emissions standards, which have specific goals to have a certain percentage of new vehicle sales be emission-free.
Maryland laws already exist that require the State to match California’s vehicle emissions programs. Maryland aligned with the California Air Resource Board (CARB) vehicle standards in 2011 and is one of seventeen states in the U.S. to adopt the same standards.
Today I announced action to ensure that all new passenger cars and trucks sold in the State of Maryland are zero emission by 2035.
Car exhaust is the largest source of greenhouse gas in the State of Maryland. This new regulation puts us on a fast-track to meet our climate goals. pic.twitter.com/qR7R20fvAW
— Governor Wes Moore (@GovWesMoore) March 13, 2023
“This is a policy that was created in California,” House Minority Leader Jason Buckel said in a statement to the Baltimore Sun. “It is based on California’s economy, California’s transportation needs, and California’s electrical grid.”
The proposal will require 43 percent of Maryland’s new car sales to be zero-emission by 2027. By the model year 2035, all new passenger vehicles sold in Maryland will need to be zero-emission. The requirements allow plug-in hybrid vehicles to account for 20 percent of the requirements.
Maryland Governor Wes Moore criticized the previous administration, run by Larry Hogan, for dragging its feet to push the state’s fleet of passenger vehicles to be more sustainable:
“The last administration pumped the brakes on this regulation, but today I am proud to say that we’re getting rolling again.”
Moore drove off from a Monday press conference in a Ford Mustang Mach-E, which was the Detroit-based automaker’s initial EV rollout several years ago.
“Today, we’re talking about a major transformation that is going to define this administration—and that’s how we turn Maryland from a state powered by oil and gas to a state powered by clean energy,” Gov. Moore said in a press release. “I am confident that the state of Maryland can and will lead the clean energy revolution.”
383,000 fewer new gas-powered vehicles would be sold under the new rule by 2030. This figure rises to 1.68 million vehicles by 2035.
The requirements are expected to be finalized by September and the public will be given an opportunity to comment and voice concerns. The rule will receive an advisory review from a legislative committee.
In August, California became the first U.S. state to ban the sale of new gasoline cars by 2035. Every new car sold in the state after that year is required to be 100 percent free of fossil fuel emissions.
“The climate crisis is solvable if we focus on the big, bold steps necessary to stem the tide of carbon pollution,” Governor Gavin Newsom said in August when the goal was announced.
California plans to have 68 percent of its new car sales be zero-emissions by 2030. 35 percent of new car sales will be free of fossil fuels by 2026.
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Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
