When gas goes high, California goes EV
Published on March 23, 2026.
The war in Iran could boost the electric vehicle market as California's average gas price continues to rise, with the country's gas price rising to $5.79 per gallon on Monday, a more than $1 increase since last month due to restrictions on oil shipments through the Strait of Hormuz. Car dealers and market analysts suggest this could push American car buyers towards more fuel-efficient options. The uncertainty surrounding the situation has led to increases in electric vehicle traffic on Edmunds' website, with a steady increase in car shoppers searching for EV and hybrids nationally. This is welcome news for state regulators who watched EV sales plummet over the last three months of 2025 following the Trump administration's cancellation of a $7,500 federal tax credit in September. However, this is expected to significantly increase as long the war continues and how long it takes for gas prices to return to their pre-conflict normal.
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