Well, I don’t know about you, but when I think of Toyota, I think of reliable Camrys, not a company that’s about to throw hands and get in a pissing match with California. But here we are, living in a world where Toyota’s North American COO, Jack Hollis, just threw down the gauntlet, calling California’s electric vehicle (EV) mandates atrociously “impossible.”

(Source: Giphy) 

In short, during a media roundtable yesterday, Hollis basically called out the Golden State for living in a fantasy world where unicorns drive Teslas and everyone else is stepping over each other to buy their next overpriced ZEV (that’s Zero Emission Vehicle, for those not fluent in bureaucratic acronyms). And spoiler: They’re not. 

(Source: CNBC) 

But what’s really triggered Toyota, is that starting next year, California’s Air Resources Board (CARB) is telling automakers that 35% of their 2026 models sold in the state need to be zero-emission vehicles (ZEVs). That means battery-electric, fuel cell, or plug-in hybrids (PHEVs). Sounds great if you live in a world where the Tooth Fairy is also your financial advisor - Because again, according to Hollis, “demand isn’t there,” and the numbers just don’t add up. 

(Source: Giphy) 

What’s more is that it’s not just California. Twelve other states, plus Washington D.C., have decided to hop on the ZEV train. The issue? None of them are ready for it. For instance, J.D. Power reports that no state is currently meeting the mandate. Not even close. California, the golden child of EV adoption, is at 27% of new vehicle sales being electric or plug-in hybrids this year. Colorado and Washington are at 22% and 20%, respectively. Meanwhile, the national average? A whopping 9%. (Yes, you read that right— ONLY 9%.)

(Source: CarScoops) 

It’s like being told to run a marathon when you’ve barely made it off the couch. Meaning, according to Hollis, if these mandates don't get dialed back, automakers are going to have to pull some “unnatural acts” to meet them in two years. And no, not the fun kind. We’re talking about forcing electric cars down the throats of states that couldn’t care less, while dealerships in Nebraska sit around wondering why they have a lot full of EVs no one wants.

(Source: Giphy) 

Additionally, Hollis pointed out that the consumer choice is being threatened. He claims that the mandates are pushing automakers to skew their production in ways that don’t align with actual demand. In other words, automakers will be bending over backward to meet the rules, even if it means making business decisions that don’t make sense. “It’s going to distort the industry. It’s going to distort the business,” Hollis stated. And honestly, he’s not wrong. I mean seriously, imagine walking into a dealership and being told your choices are between an overpriced EV or… well, nothing. Translation: Hope you like walking, because that’s where we are headed LOL.

(Source: Giphy) 

On the other hand, California’s not backing down. They’re playing the long game, with plans for 100% of new vehicle sales to be zero-emission by 2035. (See: Yeah, and I’ll be driving one of Elon’s flying cars by then, too). Ambitious? Absolutely. Realistic? Well, Toyota doesn’t think so. 

But, but, but… then again, Toyota isn’t against EVs altogether either. They’ve got plans to roll out more electric models, including EVs made right here in the U.S. starting in 2026. But Hollis is calling for a more balanced approach. Instead of rushing into EV mandates, he wants to see organic growth driven by consumer demand, not government regulations. Translation: let the consumer decide what they actually want instead of forcing them into a one-size-fits-all EV future.

(Source: Giphy) 

In the end, it’s clear that Toyota, one of the most reliable automakers out there, thinks  California is moving too fast, and the rest of the country is nowhere near ready for it. The mandates might sound good on paper, but in practice, they’re about as realistic as me winning the lottery tomorrow. And unless somebody hits the brakes on this EV fantasy, automakers are definitely going to be in for it come 2026. 

Meaning, place your bets accordingly friends, because this fiasco could definitely impact the likes of Tesla, Ford, Toyota, and every other auto stock in the future. Of course, do what you will with this information, and as always, stay safe and stay frosty, friends! Until next time…

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Stocks.News holds positions in Tesla and Ford as mentioned in the article.