U.S. drivers are increasingly considering EVs after global conflicts sparked a surge in gasoline prices in March.
According to Bloomberg, even the most enthusiastic gas-powered vehicle drivers were thinking about a switch to EVs after feeling the pressure of rising fuel costs.
What's happening?
BloombergNEF data predicted U.S. drivers would have collectively paid an additional $1.65 billion at the pump during the week of March 14.
As The Hill observed, prices were already set to rise as refiners switched to more-expensive summer blends of fuel, but after the U.S. and Israel launched attacks on Iran, costs rose even further.
One of the main drivers of the price increases is the stalled tanker traffic in the Strait of Hormuz off the coast of Iran in the Persian Gulf. A fifth of the world's oil supply passes through this waterway.
Because of that, drivers are considering their options. As Elaine Buckberg, Harvard Senior Fellow and former chief economist for General Motors, told Bloomberg, this is also leading to a shift in focus in the auto industry, with companies looking to increase EV production.
"They are running the math already, but they are also thinking about how long high prices would last," she said.
Even when gasoline costs are stable, EV drivers tend to save big compared to owners of internal combustion cars by ditching expensive pump prices for cheaper electricity.
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Meanwhile, EV owners who charge at home with a Level 2 charger, which can be easily installed and ordered via companies like TCD partner Qmerit, can save even more by avoiding public charging stations altogether.
How do rising fuel costs impact the EV market?
Auto-industry experts explained to Bloomberg that rising gasoline prices can quickly turn shoppers towards EVs.
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Save $1,000 this year 💸 Steven Cegelka, chief operating officer of Ignition Dealer Services, said that when prices near $4 a gallon, shoppers start seriously considering going electric.
Data from CarEdge, a platform that helps shoppers negotiate with dealerships, revealed that search traffic for EVs increased 20% in the week following the initial attack on Iran.
Michael Prichinello, co-founder of Manhattan's Classic Car Club and long-time petrolhead, told Bloomberg that he is shopping for an electric truck for the first time after his gas bill stretched to over $50 a day.
"My commute is 220 round-trip and I drive a full-sized Silverado," Prichinello said. "She's a gem and I'll never get rid of her, but it feels irresponsible."
Swapping your gas car for an all-electric vehicle provides more independence from global oil supply issues. Pairing an EV with home rooftop solar panels can effectively charge your car with electricity generated by the sun, which is much cheaper than energy from the grid.
If you're interested in solar panels, the TCD Solar Explorer can help you understand your options and save up to $10,000 on installation costs by connecting you with trusted partners and competitive bids from vetted local installers.
For drivers who already have an EV, TCD partner Qmerit can help you get free estimates for Level 2 charger installations that can help you ditch pricier public options.
Itay Michaeli, an analyst at investment bank TD Cowen, told Bloomberg the ongoing gas price volatility could drive a wave of new EV sales. In a report from mid-March, Michaeli predicted the U.S. could see demand for millions of new EVs virtually overnight.
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