As EU waters down 2035 EV goals, electric startups express concern

The European Commission has softened its original plan to ban the sale of gas-powered cars by 2035, now allowing up to 10% of new car sales to be hybrids or other non-zero-emission vehicles, provided manufacturers purchase carbon offsets. This shift aims to offer flexibility to traditional European automakers, who have lobbied for more time to transition beyond hybrids amid stiff competition from Tesla and affordable electric vehicles from China. The revised policy, if approved by the European Parliament, reflects a balancing act between maintaining competitiveness and pursuing environmental goals but has sparked concern and division among electric vehicle (EV) startups and climate-focused investors. Critics, including EV startups and venture capitalists, argue that watering down the 2035 zero-emission target risks Europe losing leadership in the global EV market and undermining long-term industrial competitiveness. Signatories of the “Take Charge Europe” open letter, which includes executives from various EV-related companies, urged the Commission to maintain its original ambitious goals. Some established automakers