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An electric vehicle at a fast-charging station in San Francisco. (Bloomberg) <\/p>\n An electric vehicle at a fast-charging station in San Francisco. (Bloomberg) <\/p>\n
It has been a bumpy road for the electric vehicle market as declining federal support and plateauing public interest have eaten away at sales.<\/p>\n
But EV sellers could soon receive a boost from an unexpected source: The war in Iran is pushing up gas prices.<\/p>\n
As Americans look to save money at the pump, more will consider switching to an electric or hybrid vehicle. Average gas prices<\/a> in the U.S. have risen nearly 17% since Feb. 28 to reach $3.48 per gallon. In California, the average<\/a> is $5.20 per gallon.<\/p>\n Electric vehicles are pricier than gasoline-powered cars and charging them isn’t cheap with current electricity prices, but sky-high gas prices can tip the scales for consumers deciding which kind of vehicle to buy next.<\/p>\n “We probably will see an uptick in EV adoption and particularly hybrid adoption” if gas prices stay high, said Sam Abuelsamid, an auto analyst at Telemetry Agency. “The last time we had oil prices top $100 per barrel was early 2022 and that\u2019s when we saw EV sales really start to pick up in the U.S.”<\/p>\n Read more: As gas prices rise, California gets punched harder at the pump than other states<\/a><\/p>\n In a 2022 AAA survey, 77% of respondents said saving money on gas was their primary motivator<\/a> for purchasing an electric vehicle. That year, 25% of survey respondents<\/a> said they were likely or very likely to purchase an EV.<\/p>\n As oil prices cooled, the number fell to16% in 2025.<\/p>\n In California, annual sales of new light-duty zero-emission vehicles jumped 43%<\/a> in 2022, according to the state’s Energy Commission. The market share of zero-emission vehicles among all light-duty vehicles sold rose from 12% in 2021 to 19% in 2022.<\/p>\n “Prior to 2022, we didn\u2019t really have EVs available when we had oil price shocks,” Abuelsamid said. “But every time we did, it coincided with a move toward more fuel-efficient vehicles.”<\/p>\n Dealers are anticipating a windfall.<\/p>\n Brian Maas, president of the California New Car Dealers Assn., predicted enthusiasm for EVs will rebound across California if oil prices don’t come down.<\/p>\n “If prior gasoline price spikes are any indication, you tend to see interest in more fuel-efficient vehicles,” he said.<\/p>\n Read more: Tesla dethroned as the world’s top EV maker<\/a><\/p>\n Rising gas prices could be a lifeline for EV makers at a time when federal support for green cars has been declining.<\/p>\n Under President Trump, a federal $7,500 tax incentive<\/a> for new electric vehicles was eliminated in September, along with a $4,000 incentive for used electric vehicles.<\/p>\n In California, the zero-emission vehicle share of the total new-vehicle market was 22% through the first 10 months of 2025, then dropped sharply to 12% in the last two months of the year, according to the California Auto Outlook.<\/p>\n Meanwhile Tesla, the most popular EV brand in the country, has grappled with an implosion of its\u00a0reputation<\/a>\u00a0with some consumers after its chief executive, Elon Musk, became one of Trump’s most vocal supporters and helped run the controversial Department of Government Efficiency.<\/p>\n Over the last several months, Ford, General Motors and Stellantis have pared back EV ambitions.<\/p>\n Other automakers, including Nissan, announced plans to stop producing their more affordable electric models.<\/p>\n The Trump administration has moved to roll back federal fuel economy standards and revoked California\u2019s permission to implement a ban on new gas-powered car sales by 2035.<\/p>\n David Reichmuth, a researcher with the Clean Transportation program in the Union of Concerned Scientists, said the shift in production plans will affect EV availability, even if demand surges.<\/p>\n That could keep people from switching to cleaner vehicles regardless of higher gas prices.<\/p>\n \u201cThis is a transition that we need to make for both public health and to try to slow the damage from global warming, whether or not the price of gasoline is $3 or $5 or $6 a gallon,” he said.<\/p>\n Read more: Oil and gas prices rapidly rise as Iran war shows no signs of letting up<\/a><\/p>\n According to Cox Automotive, new EV sales nationally were down 41%<\/a> in November from a year earlier. Used EV sales were down 14% year over year that month.<\/p>\n To be sure, oil prices can fluctuate wildly in times of uncertainty. It will take time for consumers to decide on new purchases.<\/p>\n Brian Kim, who manages used car sales at Ford of Downtown LA, said he has yet to see a jump in the number of people interested in EVs, hybrids or more fuel-efficient gas-powered engines.<\/p>\n Still, if the price at the pump stays stuck above its current level, it could happen soon.<\/p>\n “Once the gas prices hit six [dollars per gallon] or more and people feel it in their pocket, maybe things will start to change,” he said.<\/p>\n