California drivers are paying more than $6 for regular gasoline, putting a pressure on household budgets and giving some people another reason to consider an electric vehicle.<\/p>\n
But higher gas prices don\u2019t necessarily mean drivers will rush to buy one.<\/p>\n
California\u2019s sales of zero-emission vehicles rebounded in the second quarter of 2026 even as the national market cooled following the expiration of federal tax credits.<\/p>\n
Researchers say the recovery highlights a bigger challenge for the state\u2019s transition away from gas-powered cars: Drivers need affordable electric vehicles to be available and the economics of owning them long-term needs to make sense.<\/p>\n
Gil Tal, director of the Electric Vehicle Research Center at UC Davis, said California\u2019s recent sales growth was concentrated in models that automakers had available to sell. The issue with that is many of them have stopped or slowed down production of their EVs in the U.S because of lost incentives and loosening of emissions standards that make gas-powered cars, including hybrids, better investments.<\/p>\n
\u201cWe have no leverages on the car companies,\u201d Tal said. \u201cWhen gas prices are really high, people are looking for EVs, but there is not enough supply.\u201d<\/p>\n
UC Davis Electric Vehicle Research Center Director Gil Tal plugs in an EV Friday, Sept. 25, 2026, at UC Davis.(Gerardo Zavala\/CapRadio)<\/p>\n
Affordable EV models are scarce despite market rebound<\/p>\n
California sold nearly 87,000 new zero-emission vehicles in the second quarter of 2026<\/a>, which accounts for about a fifth of new-car sales, according to the California Energy Commission.<\/p>\n That includes electric vehicles, plug-in hybrids and hydrogen-powered cars. Electric Vehicles represent the vast majority of those sales by themselves, accounting for roughly 17% of new-car sales in the state.<\/p>\n That\u2019s nearly three times the national average of 6% of new-car sales being EVs during the same time period.<\/p>\n Tal\u2019s research<\/a> suggests that vehicle availability helped drive California\u2019s rebound while the expiration of federal incentives contributed to a downturn in demand across the country as automakers pulled back on some electric models.<\/p>\n When gasoline prices climbed, Californians \u2014 and Americans in general \u2014 increasingly looked for electric vehicles but found that the supply of affordable options limited their choices.<\/p>\n \u201cOur market is very limited on affordable cars \u2014 any affordable cars \u2014 in the U.S.,\u201d Tal said. \u201cIf you drive one country to the north or one country to the south, you will find many affordable EVs that are not offered here.\u201d<\/p>\n Tal said that means consumers showing up to dealerships looking for their ideal electric vehicle might not find any, which has led many to purchasing alternatives like hybrids instead.<\/p>\n \u201cIn California, I think that many people used to go to Tesla, but now there are other reasons for people not to like Tesla,\u201d he said. \u201cIf you have a large family and you look for a seven-seater or if you are looking for a more affordable [vehicle], the number of models in these segments is very limited.\u201d<\/p>\n His research found that most of the country is shifting towards hybrids in response to high gas prices \u2014 over $4 on average nationally. He said the share of new hybrid vehicle sales jumped from 13.3% to 16.9% between January and May \u2014 roughly 35,000 more hybrid buyers a month, dwarfing California\u2019s \u201cplug-in\u201d rebound.<\/p>\n High electricity prices have also made convincing consumers to make that transition even more difficult. In response to that and the loss of federal incentives, the state recently launched its own incentive program to encourage Californians to ditch the pump for the plug.<\/p>\n California\u2019s rebate program lowers upfront cost<\/p>\n California is trying to lower the upfront cost through MyFirstEV<\/a>, a program offering qualifying first-time zero-emission vehicle buyers up to $3,500 toward a new vehicle and $1,750 toward a qualifying used one.<\/p>\n The program combines state funding with contributions from automakers for roughly $271 million in total incentives. It\u2019s run by the California Air Resources Board, or CARB.<\/p>\n CARB communications director Lindsay Buckley said early demand has been strong.<\/p>\n \u201cOne early indicator of its success was Tesla, a California company that participated,\u201d she said. \u201cThey actually sold out in a week.\u201d<\/p>\n But rebates can only help people buy vehicles that are available. Tal\u2019s research suggests that automakers\u2019 supply decisions will remain a key factor in whether the state can sustain its recent sales growth.<\/p>\n Republican state Senator Tony Strickland argued that California\u2019s own policies are also part of the problem. High electricity prices, limited charging infrastructure and concerns about energy capacity are three things he said makes transitioning to EVs difficult for most.<\/p>\n \u201cThere is no demand right now for the EV vehicle,\u201d Strickland said. \u201cIf the technology gets better and more people move towards it, great, but that\u2019s not what\u2019s happening.<\/p>\n Strickland, who is vice chair of the Senate Transportation Committee, also said he\u2019s against using taxpayer money to subsidize EV purchases.<\/p>\n Buckley said the state is monitoring electricity demand and encouraging EV owners to charge outside peak energy-consumption hours to avoid straining the power grid.<\/p>\n High gas prices might not be the only issue<\/p>\n