What soaring gas prices mean for California's EV market

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It has been a bumpy road for the electric vehicle market as declining federal support and plateauing public interest have eaten away at sales.But EV sellers could soon receive a boost from an unexpected source: The war in Iran is pushing up gas prices.As Americans look to save money at the pump, more will consider switching to an electric or hybrid vehicle.

Average gas prices in the U.S.have risen nearly 17% since Feb.

28 to reach $3.48 per gallon.In California, the average is $5.20 per gallon.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.

“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’s when we saw EV sales really start to pick up in the U.S.” Business Gas prices are on the rise amid U.S.

conflict with IranIn a 2022 AAA survey, 77% of respondents said saving money on gas was their primary motivator for purchasing an electric vehicle.That year, 25% of survey respondents said they were likely or very likely to purchase an EV.

As oil prices cooled, the number fell to16% in 2025.In California, annual sales of new light-duty zero-emission vehicles jumped 43% 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.

“Prior to 2022, we didn’t 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.”Dealers are anticipating a windfall.

Brian Maas, president of the California New Car Dealer...