Americans Want EVs — They Just Can't Find Them or Afford Them

Gasoline climbed from $2.94 to $4.35 a gallon within three months of the U.S. and Israeli strikes on Iran on Feb. 28, 2026 — the strongest argument for going electric in years. Yet fully electric vehicle sales fell 16% from March to May 2026 versus the same months in 2025, according to Argonne National Laboratory data, while hybrid sales rose 18%.

Some observers read that split as proof that high gas prices won't push Americans into full EVs. John Paul Helveston, an associate professor at George Washington University who studies car buyers and their preferences, says that conclusion misses half the story. Sales show what people bought, not what they wanted — and when supply can't keep up with demand, prices rise.

That, he argues, is exactly what happened to EVs in 2026.

Why did EV sales fall while hybrids surged?

Hybrids and EVs faced the same demand shock from the oil crisis, but only one side could meet it. Hybrid production had grown for years, led by Toyota, which sells about half of the hybrids bought in the U.S. Hybrid inventories on dealer lots were 19% higher in March 2026 than a year earlier, according to S&P Global Mobility.

EV production, by contrast, had been in retreat since the tax and spending law President Donald Trump signed in July 2025 ended federal tax credits — up to $7,500 on new EVs and $4,000 on used ones — after Sept. 30, 2025. Automakers responded by pulling back hard:

• General Motors laid off more than 3,400 workers at EV and battery plants and shifted its Tennessee plant to batteries for energy storage, not cars.
• Ford wrote off $19.5 billion from its EV business, killed the all-electric F-150 Lightning and converted a Tennessee EV plant to build gas-powered trucks.

Buyers had rushed to beat the deadline, pushing EVs to 11.3% of new vehicle sales in September 2025. By November, after the credits expired, their share dropped to 4.3%, according to Argonne data.

What did the shortage do to prices?

As gas prices rose in 2026, EV demand came back — and supply tightened. New EV inventories shrank from about 130 days of supply in the first quarter to 78 days by August, just two days above gas-car levels, according to Cox Automotive.

Discounts tell the same story. Helveston's analysis of Marketcheck listings shows the median new EV was listed 9.8% below sticker in February, 6.6% below in April and 4.7% below in June. Dealers saw rising demand, not inventory to clear.

The used market went tighter still. Used EV prices climbed 13% through late June 2026 — roughly $3,500 on a typical vehicle. Recurrent, a firm that tracks used EV batteries, found the price of a used 2023 Chevrolet Bolt rose almost 20% from January to June. Used EV inventories fell to 31 days of supply in May, 23% below the prior year, per Cox.

None of this means the EV market is healthy. High prices and uncertain charging access remain real stumbling blocks for buyers. But Helveston's verdict is blunt: sales stalled because there weren't enough EVs to buy, and there were plenty of hybrids as an alternative.

What does this change for drivers?

The average new car now sells for about $50,000 and the average new EV for about $55,000, according to Kelley Blue Book. Meanwhile, drivers stay exposed to oil volatility. The U.S. is the world's largest oil producer, yet a Persian Gulf war raised pump prices sharply in three months — oil trades globally, so Americans pay global prices.

Seven months into the war, the pressure hasn't eased. Oil stayed above $100 a barrel in mid-October, and diesel hit a record $6.52 a gallon on Sept. 22. EV sales haven't caught up: Argonne counted 86,000 in August, fewer than May's 101,000, while hybrid sales held above 216,000 a month all summer.

Is Washington making it better or worse?

Worse, by Helveston's account. The fuel economy rule released Sept. 28, 2026 loosens efficiency requirements for gas vehicles and, in 2028, ends the credit system that let EV makers sell compliance credits to lagging automakers — removing a key regulatory incentive to build EVs.

Regulators say buyers will save $1,289 on the purchase price of a new gas vehicle from cheaper engineering. The same analysis estimates drivers will spend about $1,600 more on gas over the car's life — and that uses fuel forecasts well below current prices. Economists say the administration's math doesn't properly account for those fuel costs.

The U.S. has also shut out Chinese automakers, even though nearly three-quarters of the world's electric cars are built in China. In 2024, Chinese buyers could choose from over 130 EV models under $40,000; Americans had just four. Beyond tariffs above 100% on Chinese-made EVs, a Commerce Department rule bars cars from Chinese-linked automakers starting with model year 2027 — even if built in the U.S. — and a pending Senate bill would block Chinese investment in U.S. auto factories outright.

As long as gas stays expensive, the gap between the EVs Americans want and the EVs dealers can sell them will likely persist. Ending tax credits, rolling back fuel economy standards and banning Chinese technology all make EVs harder to build — meaning fewer affordable electric options for U.S. buyers for years to come.