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Fuel Prices Push People To Buy Electric Vehicles, Tesla Sees 100% Order Rate Increase

It was just a matter of time until Americans would see the benefits of having an electric vehicle, considering the rocketing fuel prices in the past weeks. According to people familiar with the matter, Tesla is seeing surges in the number of orders in some parts of the country. This should not influence Tesla sales, as most of its gigafactories are working at capacity already.
Fuel prices push people to buy electric vehicles 7 photos
Fuel prices push people to buy electric vehiclesFuel prices push people to buy electric vehiclesFuel prices push people to buy electric vehiclesFuel prices push people to buy electric vehiclesFuel prices push people to buy electric vehiclesFuel prices push people to buy electric vehicles
It’s happened before in times of economic turmoil and it will no doubt happen again: fuel-thirsty vehicles are sidelined in favor of more economical alternatives. In 2009 this meant throwing away what they called “gas-guzzlers” and replacing them with sensible vehicles with better fuel economy. But these days we have a better solution in electric vehicles and, no matter how much they hate Evs, the Americans are increasingly considering buying one in the next months.

Gasoline prices are going for record highs these days, with an average of $4,25 and spikes of $5 in some regions of the country. This is highly convincing for those who contemplate joining the EV revolution. Many people who wanted to buy a new vehicle are considering a battery-electric one now. This does not mean the electric vehicles are there, though, as most carmakers are already having a hard time fulfilling previous orders.

Tesla is seeing a surge in the number of orders in the parts of the U.S. most affected by the fuel price surge. According to Electrek which cites sources familiar with the matter, the order rate increased this week by as much as 100% in some areas compared to last week. Although this seems like good news, it should be noted that Tesla is not in a position to sell more cars at the moment.

In the U.S., the delivery estimate for the base Tesla Model 3 is July 2022, while a newly-ordered Model Y will not arrive earlier than September 2022. The situation will not ease until Gigafactory Texas will come online, but the production ramp-up might take the better of 2022. The situation is also tense in other markets, and Tesla cannot do much to speed up deliveries.

Tesla might be the biggest EV maker in the U.S., but other carmakers sell electric vehicles too. Unfortunately, all of them have production constraints at this moment. Nevertheless, many EV assembly plants will be completed in the next couple of years, so things should improve in the long term. This might be the inflection moment the EV evangelists were waiting for

 
 
 
 
 

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