California Dreamin Of All EV 2035, Fed Speech Incoming, Tesla Splits, Elimination of Dead Zones

Shoot us a Text.

Lot’s of fun this Friday as we breakdown California’s 2035 EV rules, Fed Chair, Jerome Powell’s incoming speech from Jackson Hole, WY, as well as the Tesla stock split and Space X’s T-Mobile tag team. 

• California’s new law will limit supply of passenger vehicles to be exclusively EV’s by 2035
  • The original regulations were announced as an executive order from Gavin Newsom in 2020 and met strong opposition from both the federal government and carmakers
  • The Trump administration sought to make it illegal for any state to set standards more stringent than the fed and was supported by automakers such as GM and Toyota
  • This time around, the regulations received near support from some automakers including GM who stated they have a similar vision for an all EV future
  • The Biden administration has placed a voluntary goal of 50% EV production by 2030
  • The new California law will require 35% in 2026, 68% by 2030, and 100% by 2035.
  • EV sales still account for only around 6% of U.S. new-vehicle sales, they were 16% in the second quarter in California
  • California remains one of states losing population the fastest
  • Take away: 
• Fed Chair Jerome Powell will deliver a speech at the Federal Reserve’s annual Jackson Hole, Wyoming, symposium and is expected to have a stronger tone than in his last in June where he is expected to reiterate the Feds position to keep their inflation-fighting rate-hiking strategy in tact
  • “The challenge for Powell is going to be the tone he adopts. I think he came across as slightly too dovish, not hawkish enough in July,” said David Page, head of macroeconomic research at AXA Investment Managers. “I think he wants to avoid that now, with markets expecting him to be relatively hawkish. ... It’s a very difficult game. It’s a game of expectations. ... It becomes a fine tune issue.”
  • After the last announcement there was a stock rally and Powell wants to avoid this again since the misinterpretation that inflation is over can actually cause more inflation and impending recession
    
    
• Tesla shares had a 3 for 1 split yesterday, the second since its 5 for 1 split in 2020 
  • A split doesn’t change the value of the company but makes it easier for more investors to get in the game 
  • $900 to $300 range
    
    
• Space X and T-Mobile are partnering to provide satellite based cell phone coverage to remote areas announced by Elon Musk and T-Mobile CEO Mike Sievert
  • in a press release that the new plan would "provide near complete coverage in most places in the US — even in many of the most remote locations previously unreachable by traditional cell signals."
  • Musk tweeted that the service will eliminate dead zones worldwide
  • The program will begin with tex

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/