A new survey shows that prospective electric vehicle buyers are considering Tesla over any other brand as more buyers consider electrified options due to soaring gas prices.
According to Kelley Blue Book, 25% of new car buyers considered an EV in January, February, and March 2022. After reviewing the findings of a customer perception survey, the automobile research firm arrived to this conclusion. This poll also gathered information on consumer shopping habits.
The survey results showed Tesla was still the dominant brand among EV shoppers, with most preferring either the Tesla Model 3 or Tesla Model Y. Additionally, the 2022 Toyota RAV4 Hybrid was a market leader among hybrid shoppers.
Several factors have driven new-car buyers toward electrified vehicles, one of which is the rise in gas prices. According to the U.S. Energy Information Administration, the typical American paid $2.60 per gallon of normal retail gasoline in 2019. Gas prices have risen to $4.50 a gallon in three years, with some paying closer to $6 depending on their location.
Today, the national average price of a gallon of gas in the U.S. has reached $4.98, up nearly $2 from a year ago, according to AAA.
In March, Tesla said it was experiencing an increased volume of orders in several regions of the U.S., especially those that had experienced a drastic increase in the price of gas per gallon.
As a result of skyrocketing gas prices, a large segment of the car market is looking for less expensive vehicles to drive. The fact that EV maintenance is more economical in general has proven to be an additional motivator. Moreover, there’s an increase in charging stations and increased range in new EV models, allowing more buyers to really consider switching to electric vehicles.
The government’s tax credit program for electric vehicle purchases has offered consumers yet another reason to consider EVs. However, automakers who have been involved in the electrification movement for several years, like Tesla and General Motors, have lost the right to offer these incentives due to a federal cap of 200,000 vehicles. Toyota is set to be the next automaker to be disqualified from offering the $7,500 electric vehicle tax credit. Tesla reached the 200,000 sales threshold in mid-2018, while GM reached it in December of the same year.
Cox Automotive said Tesla’s EV market share rose to 75 percent in Q1 2022 from 70 percent in the same quarter a year prior. Tesla’s dominance in the EV market was primarily driven by the Model 3 and Model Y, which accounted for over 295,320 of the company’s over 310,000 deliveries in the first quarter.