Surging gas prices are driving demand for electric cars – but good luck finding one to buy

More drivers are considering making the switch away from fossil fuels because of the high gas prices. Don't expect to buy an electric vehicle in a pinch.

Consumers tend to go for more fuel efficient options during periods of pain at the pump. When oil prices went up in 2008, buyers went for small cars and hybrid vehicles.

You would think we would see a similar pattern as the price of gas in the US goes up and the price of energy in the world goes down. No matter how eager consumers are to go electric, there simply aren't very many cars to buy. It is likely that those that are available are very expensive.

Cars.com saw searches for electric models shoot up 112% on March 8, as compared to before the war. Searches for used cars increased by 130%.

When the price of gas goes up, Cars.com always sees searches for efficient vehicles increase quickly.

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The inventory of new cars at US dealerships is at a fraction of pre-pandemic levels because of a chip shortage and havoc up and down the automotive supply chain. The US supply of new vehicles was 1.07 million units at the beginning of March, which is 2.4 million below the same time in 2020. Even without a shortage, battery-powered cars are a low-production, niche item, making up less than 3% of US vehicle sales in 2021.

With low supply and record inflation, electric models are even more out of reach for ordinary consumers. The average price for a new EV was $60,054 in February, a $1,820 premium over their average price. During the first week of March, searches for electric and hybrid vehicles increased by 18%.

Last week, the leading electric-car maker,Tesla, raised prices across its lineup by as much as $12,500 after its CEO, Elon Musk, complained of inflationary pressure in materials and shipping costs. The cheapest offering from the company now starts at $47,000, $10,000 more than a year ago.

The war in Ukraine could push the prices of metals like nickel even higher. Russia is a major exporter of metals.

One can't help but wonder if gas prices will have a lasting impact on people's car-buying habits. Will anyone remember this moment when they make their next car purchase?

Ivan Drury, senior manager of insights at Edmunds, said that once gas prices declined and the economy recovered, people went back to SUVs and pickup trucks. Over 70% of the vehicles sold in the US are in those categories.

He said that every gas crisis drives some people to consider alternatives. The sheer number of new electric models just over the horizon looks promising.

With every single gas spike, you end up with a portion of consumers that do deviate.