US Consumers Reconsider EVs as Gas Prices Rise

Higher fuel costs and competitive pricing make electric vehicles more appealing, even without green incentives.

Mar. 23, 2026 at 5:07am

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With rising gas prices, more Americans are finding compelling reasons to purchase electric vehicles (EVs), even without federal tax credits. Factors like a growing used EV market, manufacturer and dealer incentives, and the rising costs of diesel for truckers are driving increased EV adoption.

Why it matters

The shift towards EVs could accelerate as consumers prioritize cost savings over environmental concerns during periods of high gas prices. This trend could have significant implications for the auto industry, energy markets, and efforts to reduce carbon emissions.

The details

While the argument used to be that EVs cost more upfront but were cheaper to run, there now exists a solid used market for electric passenger vehicles, allowing more consumers to enter the space at different price points. Additionally, manufacturer and dealer incentives are helping to convince buyers, with one 33-year-old sales engineer purchasing a 2026 Chevrolet Equinox EV for over 50% off the sticker price. The development is also well-timed for semi-truck drivers, who are among the earliest Americans to feel the adverse effects of the Iran war on their wallets, with diesel price increases costing one independent trucker an extra $300-$400 each week.

  • In March 2026, electric vehicle sales are increasing as gas prices rise.
  • Tesla recently expanded its one-month pilot tests of its first semi-truck, the Tesla Semi, and plans to begin shipping the mass-produced Semis this summer, totaling 15,000 by the end of 2026, and then delivering 50,000 per year after that.

The players

Albert Park

Chief Economist at the Asian Development Bank.

Elaine Buckberg

Former Chief Economist of General Motors.

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What they’re saying

“Higher oil prices always help the transition to electric vehicles.”

— Albert Park, Chief Economist, Asian Development Bank

“It typically takes three to six months of persistently higher gas prices for consumers to start considering more cost-effective alternatives.”

— Elaine Buckberg, Former Chief Economist, General Motors

What’s next

Tesla plans to begin shipping the mass-produced Tesla Semi trucks this summer, with a goal of delivering 15,000 by the end of 2026 and then 50,000 per year after that.

The takeaway

The shift towards electric vehicles is being driven by a combination of rising gas prices, a growing used EV market, and manufacturer/dealer incentives, rather than just environmental concerns. This trend could have significant implications for the auto industry, energy markets, and efforts to reduce carbon emissions.