As energy prices soar, more people are considering a move away from gas-powered vehicles, however, finding electric vehicles (EVs) or hybrids has been difficult amid the surging demand.
On Tuesday, oil was trading around the $111 a barrel level, while Brent, the global benchmark, rose to $116 as the war between Russia and Ukraine continues. Oil prices are up more than 45% this year.
|USO||UNITED STATES OIL FUND L.P.||73.62||-1.18||-1.58%|
|BNO||UNITED STS BRENT OIL FD LP UNIT||30.07||-0.75||-2.43%|
The national average for gas on Tuesday was $4.24, slightly lower than the week before and $1.36 lower compared to the year before, according to AAA.
He noted that reservations for the all-electric Cadillac LYRIQ SUV, one of the latest electric vehicles to hit the market, are already sold out at a price point of about $60,000.
Cadillac reportedly announced in September that reservations for the LYRIQ EV sold out in just over 10 minutes.
To meet increasing demand, cities across the country have been adding charging stations for electric vehicles.
Despite higher prices for EVs and limited availability, strong demand is forecast for the segment, which means more communities will feel increased pressure to add charging stations or risk having drivers pass them by in favor of plug-in-friendly areas.
In fact, on Monday, New Jersey officials awarded $1 million in grants to install EV charging stations in more than two dozen tourist areas around the state in an attempt to help spur tourism. The idea is meant to reassure tourists who own these vehicles that they can come to a vacation spot in the state and not risk running out of power to get back home.
Flock also reported on Tuesday that electric vehicles "cost a lot more" upfront.
Kelley Blue Book also noted last month in a news release that despite industry-wide inventory constraints and overall slow new-car sales growth throughout last year, sales of battery-powered electric vehicles hit a new record with a strong year-end finish in the fourth quarter.
The vehicle valuation and automotive research company noted that EV sales jumped 72% year-over-year to a record 147,799 units in the fourth quarter and EV market share was 4.5%, also a record high.
Nearly half-a-million buyers bought an EV in 2021 as the number of pure EV choices continues to improve, according to Kelley Blue Book, which noted that there were 25 different electric vehicle models sold in the fourth quarter of 2021 with several new ones scheduled to hit the market in 2022.
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Electric vehicles do not require as much maintenance as gas-powered cars, especially since they don’t need oil changes or air-filter replacements. According to AAA research, EVs cost $949 a year to maintain compared to $1,279 for gas-powered vehicles, which is 35% less.
General Motors is listening to consumer demands, revealing last month that investments in technology will take priority over bigger profits next year and that the company will spend more than the $35 billion previously planned through 2025 to speed up launches of new electric vehicles, Reuters reported.
The Associated Press contributed to this report.