By David Piperno, CFO, SparkCharge
June 11, 2025
The global consumer automotive market has already spoken, reflected in an International Energy Agency report just published in May that predicts a quarter of global car sales will be electric. This isn’t driven by one specific country or mandate, but rather than by the most important factor: EVs are superior to internal combustion engine (ICE) vehicles in nearly every measure across comfort, cost, efficiency and more.
What’s more, the EV sector has been valued at half a trillion dollars in 2023, making it easy to do the math with respect to market opportunity as well as the job creation and business opportunities across the automotive value chain.
This makes the U.S. Senate’s recent decision to overturn California’s rule phasing out new ICE vehicle sales by 2035 so puzzling. Overreach from government officials in California as well as at the federal level must understand they are doing far more than handicapping the EV sector but rather creating risk for the broader economy. Worse, some of America’s biggest economic competitors, like China, stand to gain even more market share, far exceeding the U.S. despite our innovative advantages.
The Global Stakes: Innovation Is the Race
China, now the largest EV market in the world, is setting the bar, with nearly two-thirds of global sales. BYD recently unveiled a 1,000-kilowatt (1 MW) charging platform that delivers up to 250 miles of range in just five minutes, which sounds a lot like a quick stop for gas.
And no, this growth is not about just vehicles. Batteries are considered some of the most high-growth industries in the tech sector. Japan and South Korea, to name a few, are countries in pursuit of “high energy batteries of the future.”
Now consider industry categories spanning semiconductors, charging systems, minerals as well as the broader construction, engineering and electrical services needed for implementation, and you’re talking about a great deal more than just vehicles. Hundreds of thousands of job opportunities could be squandered, like the 82,000 new U.S. jobs created by the IRA’s investment in EVs, according to data from the EV Jobs Hub.
California’s Role in American Innovation
California has long served as a catalyst for national innovation. Regulations like seatbelt laws, the elimination of leaded gasoline, and catalytic converter standards began at the state level before becoming national norms. The state’s emissions authority has historically played a role not in restricting innovation, but in stimulating it by pushing automakers and energy providers to adapt, compete, and grow.
By limiting California’s ability to lead by example and establishing proof points that are soon adopted by other states, we undermine a model of state-driven experimentation that has historically delivered true public benefit as well as investor ROI.
The Challenge: Uncertainty and Chaos
The threat of uncertainty and chaos for large and small U.S. businesses alike is very real should so many policies continue to be reversed.
Auto manufacturers, utilities, battery-makers and many others have made multi-billion dollar bets on electrification, battery supply chains, and EV-focused platforms. When the rules of the road change mid-journey, it becomes harder for companies, especially small businesses, to plan, hire and build.
Policy instability also creates hesitation across the ecosystem such as fleet operators delaying purchases, utilities slowing infrastructure buildouts, and startups struggling to secure funding. Frequent reversals or unclear timelines make long-term planning more difficult, weakening U.S. competitiveness and increasing reliance on foreign technology and innovation.
What’s needed now is simply more clarity. A stable, forward-looking framework gives industry the confidence to keep investing, training, and building for the future.
Looking Forward
As China and the EU double down on electrification and domestic industrial policy, the U.S. cannot afford to waver. The question isn’t whether we’ll transition, it’s how quickly, and whether the jobs, industries and resulting investment will happen in the U.S. or on the other side of the world.
States like California have played a constructive role in pushing innovation forward. Rather than limit that role, we should embrace and learn from it.
More broadly, we need consumers, innovators, and policymakers all rowing in the same direction. If we can strengthen that alignment, the U.S. has every opportunity to maintain its role as a leader in vehicle manufacturing, as well as across the energy landscape.
About the author
David Piperno serves as Chief Financial Officer at SparkCharge. He has over 20 years of experience in finance and technology for global brands including Zipcar, SparkCharge, Spartan and Deloitte. In addition, he is an existing angel investor and board member.
