Tesla and other electric vehicle companies would soon benefit from the proposed budget of California state's Governor Gavin Newsom, which recently revealed that he would allot $1.5 billion for boosting sales alone. The full length of the proposal would be unveiled on Friday, but as early as now, it looks beneficial to California's Electric Mobility this 2021.
California is known as "The Golden State" in history books as dubbed by former residents and popular figures but that may change as the state's push for renewable energy support may earn them a nickname of "The Clean State." Cali is one of the top states in the country that pushes for electric mobility and is on board with renewable energy in the coming years.
The state has been vocal and expressive for its support and unity with electric vehicle companies to push for the switch from internal combustion engines to electric or battery-powered vehicles as the years come by. It is known that Gov. Newsom already signed papers for the total ban of ICE cars by 2035, favoring renewable energy sources such as electricity and hydrogen.
Governor Newsom's $1.5B Budget for California EV in 2021
According to CNBC, Gov. Newsom aims to strengthen the popularity of electric vehicles and their wide use in the state as early as 2021, with a proposed massive budget solely for the car to boost sales and thrive. The massive budget is still in the works but was revealed by Newsom to be the basis as he pushes for electric mobility in the state.
The budget would be broken down to several uses and intentions but the main allotment of it would be for boosting the sales of electric and hydrogen vehicles this year, both beneficial to the public and EV companies. Large and small-scale EV companies like Tesla, Ford, Rivian, Lucid, GM, Volkswagen, etc., are likely to benefit from a sales boost from the state.
Moreover, $300 million from the budget would be allotted for maintenance and the establishment of new charging stations across the state, where California is considered to have one of the most locations in the country. This venture is also a form of help and upgrade which EV companies would reap, as they could save installation costs for a new station.
Tesla, EV Companies to Benefit in California 2021
The most to benefit from Gov. Newsom's new budget proposal would be electric vehicle companies as their sales would boost and people would turn more to clean energy vehicles rather than the existing ICEs. The entirety of the state's budget proposal this 2021 aims to generate a $4.5 billion budget for businesses to thrive and jobs to be given to the public.
However, a massive portion of that, which is more than a quarter of the budget, already goes to electric mobility for California in 2021 that makes the public see how much Gov. Newsom wants to push for renewable technology. Tesla and other EV companies are looking at a fruitful 2021 in California, despite thriving in the past year without an amped support from the state.
Was Tesla and Elon Musk wrong to Move to Texas?
Right before the year ended, Tesla and Elon Musk shifted its focus from its original home of Fremont, California, to its new home in Texas, where a new Gigafactory is nearing its completion. With California's new policy takes place, the move to Texas might not be ideal, but a new market control may be beneficial for Tesla and Elon Musk.
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This article is owned by Tech Times
Written by Isaiah Alonzo
