Electric vehicles are a swift-moving trend in the luxury auto market, and rising gas costs are causing some consumers to consider how much they could save by making the switch. In a new analysis of gas and electric cars, one publication posits that now may be an ideal time to electrify your driveway.
Above: A charging Tesla. Photo: Ernest Ojeh / Unsplash
EVs are far cheaper than gas cars mile-per-mile based on both operating costs and the high price of gas, as detailed by Green Car Reports based on a report recently published by the Zero Emission Transportation Association (ZETA). The EV advocacy group analyzed the cost per mile of EVs compared to gas cars over the past six months, finding that gas cars are between three and five times more expensive than electric ones.
The cost of driving an EV can also vary based on region, ZETA found, with some states such as Arizona, Nevada, North Carolina, Tennessee, Virginia, and West Virginia boasting costs as low as 15 or 20 percent lower than gas cars. Additionally, analysts say that electricity costs are far lower volatility than gas prices, making overall operating costs more likely to stay stable as time goes on.
Another ZETA analysis published in March showed that EVs were three to five times cheaper to charge than gas cars were to fill the gas tank across the country — and even six times cheaper in a few states.
Other studies from Consumers Reports, and Deloitte have had similar findings in the areas of cost savings and costs of purchase, all while EVs remain in their infancy. Buyers are also beginning to sway in favor of EVs more and more.
A USA Today report showed that EV registrations surged by a whopping 60 percent in the first quarter, despite new car registrations dropping 18 percent overall. The milestone marks a continued shift towards mainstream EV adoption, and with more companies than just Tesla putting out their first wave of EVs, it’s safe to expect the trend to grow in the coming years.
While Tesla led EV registrations in Q1, traditional automakers including Kia, Ford and Hyundai are starting to see substantial production and registration of their own EVs. Tesla saw 113,882 registrations total for a market share of 59 percent, while Kia followed with 8,450 EVs registered. Ford had 7,407 first-quarter registrations, while Kia parent brand Hyundai registered 6,964 units.
Although Tesla largely appeals to the luxury auto sector, with its plus $40,000 starting price placing it above limits for many federal and state incentives, many consumers can also benefit from these incentives when buying their vehicles. And while there’s no denying that a range of options are now available to consumers, Tesla is well-poised to remain the EV market’s dominant force for the next few years, at the least.