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

"When gasoline prices tend to rise and people are looking for a new vehicle, they tend to prioritize vehicles that historically were higher fuel-economy vehicles. But in more recent times, there are vehicles that might run on other fuels than gasoline. In one 2022 study in California that looked at pre-pandemic data, when gas prices went up, so did EV sales."

"During the 1970s oil crisis, Americans shifted to smaller, more fuel-efficient cars. In 2008, as prices surged again because of global oil demand and supply constraints, sales of more fuel-efficient cars also temporarily grew. By 2022, when Russia's attack on Ukraine spiked gas prices, electric vehicles were finally widely available, and rising fuel costs helped push EV sales."

Oil price surges following geopolitical events increase gas prices, potentially accelerating electric vehicle adoption. Historical precedent shows consumers shift toward fuel-efficient vehicles during energy crises: the 1970s oil crisis prompted smaller car purchases, 2008 saw temporary fuel-efficient car sales growth, and 2022's Ukraine-related price spike boosted EV sales when they became widely available. Research from California demonstrates a direct correlation between higher gas prices and increased EV purchases, with regions experiencing higher fuel costs showing larger EV sales increases. Electricity prices showed no similar effect, possibly due to difficulty tracking per-unit costs. Post-pandemic market dynamics have become more complex due to supply constraints, waiting lists, and varying federal incentive policies.

Read at Fast Company