General Motors has announced that it will stop making gasoline-powered passenger cars, vans and sportutility vehicles by 2035, even though 98 percent of the company’s sales currently come from those kinds of products. Meanwhile, Ford, Volvo and Volkswagen also have said they will sell only electric vehicles (EVs) within the next 10 to 15 years. China, the largest and fastest-growing auto market in the world, is requiring all new vehicles sold in the country to be “eco-friendly” – electric, hybrid or fuel-cell-powered – by 2035. Also, the European Union said it wants to phase out gas-powered-car sales by that same year, and some individual nations, such as Ireland, Sweden and the Netherlands, are saying that they will ban the sale of new gas-fueled cars by an even earlier date of 2030. And President Biden signed an executive order to replace the federal government’s fleet of almost 650,000 vehicles with all-electric models produced in the U.S. News about EVs is everywhere, and many events, well-known or not, suggest that auto companies and suppliers, as well as governments, are making investments and policy changes to transition the auto industry into one driven by electric-vehicle production and sales. Though at this early stage many car buyers, especially in the U.S., are not yet on board, the auto industry’s restructuring to EVs is under way, and it will come with many implications, opportunities and risks, some of which we will examine in this Context Update.