Gas Prices Must Top $5/Gallon to Significantly Boost U.S. EV Sales

Despite a roughly 30% increase in U.S. gasoline prices since the onset of the Middle East conflict—pushing the national average to $4.20 per gallon—electric vehicle (EV) sales have not shown significant growth. Data shows that EV sales in April rose by about 12% year-over-year, in line with the average growth rate over the past 12 months. Analysts note that gasoline prices may need to exceed $5 per gallon to significantly influence consumers' vehicle purchasing decisions. This level is higher than current prices but close to the record high seen in 2022.