Gas prices are going up. What will it mean for electric vehicles?

The U.S. attack on Iran has caused oil and gas prices to surge, potentially pushing consumers toward electric vehicles (EVs). Historically, high gas prices have influenced car buying habits, leading to shifts toward more fuel-efficient cars during past oil crises and an increase in EV sales during the 2022 Russia-Ukraine conflict. Studies confirm that higher gas prices correlate with increased consumer interest and sales of EVs. However, the market has become more complex since 2020 due to supply shortages, incentives, and varying gas prices. Despite the end of federal incentives, EVs still offer financial advantages, especially with current high gas prices. Used EVs are becoming the most affordable car option to own, with lower lifetime costs compared to gas-powered vehicles. The pre-owned EV market is expanding rapidly, with many affordable models available, and more are expected as leased vehicles return. Beyond fueling costs, EVs also require less maintenance, further reducing ownership expenses. Automakers are launching numerous new EV models this year, and a sustained rise in gas prices might encourage them to prioritize EV production even more.