Without data, we're firmly restricted to the realm of hypotheticals, but even there I'm struggling to comprehend how this would work. Can you provide an example of such an effect?
California said they want no ICE vehicle sales by 2035 or something. They're also restricting ICE 18 wheelers. This has a huge impact on the viability of manufacturing these products for nationwide purchase. My guess is the goals will not be met. California may even have a backlash. But in the meantime markets will have been collateral damage.