Ripples are still being felt in the wake of California's pending 2035 ban of new gasoline-powered vehicles. And despite the outward confidence being projected in the automotive space, there is more than a fair share of trepidation within the industry.
This regulation makes things very complicated for the automotive industry because it begins to eat away at its key electric vehicle safety blanket: time. For years, the automotive industry has been trying to paint over the cracks posed by EV material and general innovation problems by projecting outward confidence about new technological advancements and material sources being just over the horizon. The reality, of course, is starkly different as companies continue to battle it out for access to rare-earth metals mines and patents in lieu of the greener pastures they were hoping to be operating in by now.
Therefore, questions about the industry's ability to innovate and dramatically ramp up are hugely valid, and undoubtedly interesting times lie ahead.
There are no easy answers. Car companies cannot just push hard in the race to scale EVs by 2035. Rather than reacting to each disruption with the same tools as before, automakers must build a strategic innovation capability, spanning every aspect of the modern corporation. At a very high level, here's what that looks like.