NetZero Insider’s transportation coverage for this week featured reporting from K Kaufmann on a new electric vehicle outlook report by BloombergNEF, which found that sales of new internal combustion engine vehicles will need to be phased out by 2035 to reach net zero by 2050.

The report also found that ICE vehicle sales are down by about 30% compared to their peak in 2017. BloombergNEF found that global EV markets are growing but still lagging behind the pace needed to limit warming to 2 degrees Celsius. EV growth in the U.S., which has slowed despite global gains, could be further depressed if Donald Trump returns to the White House in 2025, said Colin McKerracher, head of clean transportation at BNEF. 

In other U.S. EV news, the industry had better-than-expected sales in the second quarter of 2024, but analysts say that the key challenges that have slowed EV adoption in the country — including higher costs and consumer hesitancy — will continue to affect sales going forward. 

Meanwhile, EV opponents are not backing off their efforts to oppose mandates and emissions regulations aimed at phasing out ICE vehicles. Wyoming recently announced it is joining 25 other states in suing the Biden administration over its new vehicle fuel economy standards. 

A coalition of biofuels companies is suing EPA over new emissions standards for heavy-duty vehicles, arguing that the agency “declined to consider biodiesel and renewable diesel in combination with existing engines that are already widely available.” 

In industry news, an annual quality study by J.D. Power found that quality issues have increased in new Tesla vehicles, which received the same score as EVs made by legacy automakers after outperforming the established companies in the previous year. 

Outside the world of EVs, American Airlines announced a provisional deal to purchase 100 hydrogen-electric engines from startup ZeroAvia, touting the emission-reduction benefits of the technology.  

The news was not so good for Californian startup Universal Hydrogen, which announced that it is liquidating its business. The company had raised $100 million from investors but said it was unable to secure enough additional money to continue operations. 

Read on for more of this week’s Intelligence Report: