Consumers’ Interest in EVs Begins to Increase as Gas Prices Soar


The war with Iran is making American consumers give EVs another thought.

Analysts believe the fallout from the latest Middle Eastern conflict is likely to drive interest in battery-powered vehicles, according to CNBC. The uptick in demand comes in the wake of a near industry-wide decision to pivot back to combustion engines.

The war, which started in late February, has severely affected oil shipments through the now-blocked Strait of Hormuz, through which a fifth of the world’s oil exports would normally travel. This has increased the price of the commodity worldwide, even in regions like the U.S., which do not rely on the strait for its oil. As of Tuesday, April 7, the average price of a gallon of gas in the U.S. is $4.14, according to AAA. On Thursday, Feb. 26, two days before the start of the war, the national average was $2.94.

The Rivian R1 next to the R2

Interest in EVs, like the Rivian R1S and R2, have gone up since the start of the war in Iran

Rivian

Soaring gas prices would appear to have many Americans contemplating if now might be the time to add an EV, or possibly another, to the family fleet. Several car-buying-related platforms have seen a surge in interest in battery-powered vehicles over the last month and a half, according to CNBC. Autotrader saw inquiries for new EVs jump by 28 percent and used EVs by 15 percent during the first month of the war, while Octopus Electric Vehicles had seen EV leasing inquiries rise by 36 percent over a similar time frame.

The conflict is a rapidly evolving situation, but it seems likely to impact EV demand going forward. Even if an end to the war is near, gas prices are unlikely to immediately dip down to February levels, especially since some of the damage to infrastructure could take years to fix. It’s also possible that the conflict has made some people more aware of how reliant they are on fossil fuels, especially since gas vehicle owners are five times more exposed to high oil prices than EV owners.

This doesn’t mean that Teslas and Rivians will outnumber old-school Fords and Toyotas on the highway by year’s end, though. The war in Iran may help speed the shift toward EVs, but it is still expected to be gradual. A big part of the reason why is that legacy automakers, including companies like Ford, Mercedes-Benz, and Aston Martin, have recently reversed course on expensive electrification strategies announced earlier this decade. Another pivot so soon after seems unlikely just right now, especially with Trump’s tariffs having already cost them billions.





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