(NewsNation) — The beginning of the end for gas powered vehicles has arrived in California.
California plans to phase out gas-powered cars, and completely ban the sale of new cars by 2035 — a plan that is expected to become law this week. Gov. Gavin Newsom has touted the law as one that will improve public health in a state notorious for its clogged freeways, poor public transit and smog.
California accounts for 25% of all car sales in the United States, despite making up just 10% of the total population. Experts say the phasing out of gas-powered cars will have a major impact on the car market.
The plan works in phases. Automakers will have milestones to hit in the years 2026 and 2030 to make sure they are on track. Already, 35% of all new passenger cars sold in California by 2026 must have no emissions.
Used and vintage cars will not be impacted by the new law.
The aggressive timeline comes after President Joe Biden signed a spending bill that allocates tens of billions to speed up the transition to electric vehicles through tax credits for buyers and incentives for carmakers to move their production lines to the U.S.
The president also announced a goal of having half of all U.S. car sales be emissions-free by 2030.
According to the United States Natural Resources Defense Council, the average sticker price on a new electric vehicle is around $19,000 more than that of a new gas-powered vehicle.
Shares of electric vehicle auto maker Tesla jumped as much as 2.4% Wednesday morning on the final day of trading before the latest stock split takes effect. CEO Elon Musk saidTesla expects to see the company increase car production at an annual rate of 50% for the next several years.