The rise in gasoline prices due to the effects of the war in the Middle East is sparking increased interest among consumers in electrified vehicles, according to new data released this week by car shopping site CarGurus.com.
But that interest isn’t likely to pay the dividend of a sustained spike in sales of battery electric cars, trucks or SUVs if the war ends soon and gas prices recede.
"It's kind of described as kind of a sugar rush,” observed Kevin Roberts, director of economic and market intelligence for CarGurus, in an interview. “Consumers are highly interested in fuel efficient vehicles when gas prices are going up or at a certain elevated point. Historically, we've seen that as soon as gas prices start to come down, consumers tend to go back to what they like previously, which tends to be large, large SUVs and pickup trucks.”
That view echoes comments from Cox Automotive executive analyst Erin Keating who declared during a webcast March 25, “the one genie that often goes back in the bottle is gas prices. If tensions de-escalate tomorrow and gas stabilizes at, say, $2.80, the urgency to switch power trains fades quickly. This isn't a permanent shift in consumer preference, yet. It's a conditional response to conditions that may or may not persist.”
Meanwhile, in Washington:
Trump delivers jaw-dropping and slurred Iran address that offers no end in sight to unpopular war
I think that the real problem for Trump is going to be getting an AUMF from Congress, but if we assume that the conflict does manage to continue...