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Tesla & other EV automakers may get $1.5B investment boost from new CA stimulus plan

Tesla and other EV automakers may benefit from the California government’s 2021 stimulus plan for the equitable recovery of the state’s businesses and jobs. CA Governor Gavin Newsom shared a preview of his $4.5 billion stimulus plan, which included a $1.5 billion investment in zero-emission vehicles and their infrastructure. A the full version of his 2021 budget proposal is expected to be released on Friday.

According to CNBC, Gov. Newsom signed an order banning the sales of internal combustion engine (ICE) vehicles in the Golden State by 2035 back in September 2020. ICE vehicles would still be available in the used car market, but the order would eventually phase out fossil fuel cars. 

The 2035 order would encourage more Californians to purchase new energy vehicles, like Tesla’s all-electric cars or maybe even hydrogen-powered automobiles. Newsom’s 2021 budget allots a $1.5 billion investment that could support the transition to electric and hydrogen-powered vehicles. The preview offered a rough idea of how the $1.5 billion would be invested.

“…this Budget proposes an additional $1.5 billion investment to accelerate our state’s progress toward these goals while creating jobs. The proposal will support jobs and economic growth and provide air quality benefits and support for low-income Californians to purchase cleaner vehicles. Funds will support purchases of clean trucks, buses and off-road freight equipment and Clean Cars 4 All programs,” Newsom wrote in the preview of his 2021 budget proposal. 

Besides encouraging the purchase of new energy vehicles, the investment is also expected to support the construction of electric charging and hydrogen fueling stations in California. 

“It will also support job-creating construction of electric charging and hydrogen fueling stations necessary to accelerate zero-emission vehicle adoption. The Budget proposal will leverage additional private sector capital to build the necessary infrastructure and create jobs to support California’s recovery,” he wrote in the proposal.

The growth of California’s zero-emission vehicle infrastructure may encourage the adoption of battery electric vehicles (BEVs) or hydrogen powered cars in the near future. It seems that Gov. Newsom also believes the construction required to grow the state’s zero-vehicle infrastructure could create local jobs as well. 

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Tesla & other EV automakers may get $1.5B investment boost from new CA stimulus plan
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