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The backdrop to this conflict is California's projected budget shortfall, expected to reach an alarming $2 billion next year. Despite electric vehicles accounting for 22% of California's car sales, the state is grappling with financial headwinds that may impact its support for the EV market. Analysts suggest that the removal of tax credits could further complicate the state's ability to promote electric vehicle adoption during a time when such initiatives are paramount for addressing climate change and promoting sustainable transport solutions.