EV, Hydrogen Vehicles To Benefit From California Governor Newsom's Proposed $1.5 Billion Stimulus

California Governor Gavin Newsom proposed elements from the 2021-22 state budget on Tuesday that included a $4.5 billion stimulus for “Equitable Recovery for California’s Businesses and Jobs plan” to help California recover through the COVID-19 pandemic.

Newsom called for immediate action to support small businesses with an additional $575 million on top of the previously allocated $500 million. 

The budget also included the “Zero-Emission Vehicles and Zero-Emission Vehicle Infrastructure” plan, which proposed to allocate an additional $1.5 billion investment towards clean energy vehicles.

What Happened: California has committed to the goal of zero-emission new vehicle sales of all passenger vehicles by 2035. The proposed budget allocates $1.5 billion to accelerate towards the fulfillment of the goal.

If passed, it could boost electric vehicle and hydrogen vehicle sales as $1.5 billion is earmarked to help people and businesses purchase electric or hydrogen vehicles and equipment and invest in construction and maintenance of charging and fueling infrastructure.

Why It Matters: The proposal includes $300 million for “greening’ of state infrastructure, which allows the installation of electric vehicle charging stations at all state-owned facilities, CNBC reports. Charging stations from Tesla Inc TSLA, Switchback Energy Acquisition’s SBE, ChargePoint Inc, and Electrify America stand to benefit from the allocation. 

As per Sam Fiorani, the AutoForecast Solutions Vice President of Global Vehicle Forecasting, eleven new EVs are set to enter the domestic market, including and updated Tesla Model S. Imported EVs like Nissan Motor Co Ltd NSANY Ariya and Volkswagen A G’s VWAGY ID.4 would also go on sale in California.

As per CNBC, all these electric car and infrastructure companies stand to benefit from Newsom’s proposal.