New York is investing $750 million to build infrastructure surrounding electric vehicles, in an attempt to cap emissions in the long-term, the state's Governor Andrew Cuomo announced Thursday.

What Happened

The state's investor-owned utility companies will pump in $701 million through 2025 to build more than 50,000 charging stations for electric vehicles, under a program dubbed "EV Make Ready," Cuomo disclosed.

The governor's plan also calls for a $48.8 million funding to both electric school and transit buses, as well as charging stations. The funds are to be allocated from a 2017 settlement with Volkswagen AG (OTC: VWAGY), reached over the automaker cheating on emissions standards.

Cuomo remarked on the state's EV infrastructure push, "Through initiatives like the 'EV Make Ready' program, we are building out the infrastructure that is necessary to support the electrification of our transportation sector, while ensuring that every New Yorker can share in the benefits of this transition including cleaner air and new, well-paying jobs."

Why It Matters

A similar announcement was made by Florida last week, which too plans to invest $8.6 million on EV charging stations, Reuters reported.

Electric vehicles makers, including Tesla Inc. (NASDAQ: TSLA), have seen a surge in sales in recent years. Nevertheless, total EV sales only constituted 2% of all vehicles sold in the United States in 2019, according to data from the U.S. Department of Energy, Reuters reported.

The lack of adoption is primarily attributed to the thin density of charging stations, which are mostly located in the East and West coasts, according to Reuters.

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