April 1, 2022

Gas Prices Driving Consumer Interest Towards Electric Vehicles

  • Flyover Country

By: Konrad Holden 

In Brief: 

In a report by Cars.com, the number of searches about electric vehicles (EVs) on their site has nearly doubled since last year and nearly quadrupled since the Russian invasion of Ukraine. The website blames “The war in Ukraine, proposed infrastructure legislation, rising gas prices and supply-chain issues” for the growing interest. Despite the new interest, EVs still account for less than 1% of all cars on the road today. 

The Background: 

Gas prices have risen to all-time record levels. The national average peaked at $4.331 per gallon in early March. Currently, it sits at $4.21 as of Friday.

The massive inflation of gas prices has more Americans considering all-electric vehicles as a new mode of transportation. 

According to a report from Cars.com, nearly 55% of all non-EV drivers are considering an EV for their next purchase. The report also says that 52% of consumers consider price to be a massive obstacle to a purchase. 

Cars.com said that EV prices are not getting any better because of supply issues: “Automakers need to ramp up production, but until the supply-chain shortages level out, the extreme lack of available EVs can’t keep up with the growing demand in the current market.”

Last November, Biden’s transportation secretary Pete Buttigieg said that electric vehicle owners “never have to worry about gas prices again.”

The reason for rising gas prices is hotly debated with some calling out the White House’s decision to move away from American energy sources, while the White House says that Putin’s invasion in Russia has been the main factor.

Notable Quotes: 

“Perceived as a purchase that hedges against market swings, especially gas prices, EVs are gaining awareness and popularity, but actual purchases still lag due to extremely limited supply and several barriers to entry, with EVs constituting less than 1% of vehicles on the road.” - Cars.com

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