President Donald Trump will sign a resolution that will nix the California EV mandate on Thursday.
What Happened: Trump will sign a resolution of disapproval that bars the mandate, which has been adopted by 11 other states in the U.S and aims to phase out ICE-powered vehicles by 2035, Reuters reported on Tuesday.
The White House has invited several officials from the Automotive industry on Thursday to witness the signing, the report suggests. Trump will also sign a resolution that requires heavy-duty trucks in the state to be zero-emission vehicles.
California Governor Gavin Newsom has vowed to challenge the resolution in court, which he says could add over $45 billion to California residents.
Why It Matters: The news could prove to be a relief for several automakers in the U.S. Recently, General Motors Co. (NYSE:GM) sent out a company-wide email to employees, which reiterated the company's stance on the mandate.
"Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability," GM said.
House GOP representatives want to axe the $7500 Federal EV credit, as part of the Big, Beautiful Bill, which has been met with criticism from automakers who propose a more gradual phasing out instead.
The U.S. EV market has also seen a 10.6% YoY growth in Q1 2025 sales, where Elon Musk's Tesla Inc. (NASDAQ:TSLA) remained a market leader. Musk had criticized Trump's Big Beautiful Bill, but the White House said it would be sticking to its guns.
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