EV Adoption Slows Amid High Gas Prices and Sticker Shock
What happened
In September 2026, the national average for regular gas reached a record high of $4.33 a gallon, according to AAA. Electric vehicle (EV) adoption has cooled, making up 7.8% of new vehicle registrations in 2025, down from 8% the previous year. Kelley Blue Book reported that the average price of a new EV was $54,813 in August 2026, which was 9.4% higher than the average gas-powered vehicle.
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Why it matters
The cooling of EV adoption and the higher purchase price for electric vehicles suggest that consumer cost concerns are influencing purchasing decisions. This trend occurred following the repeal of the federal EV tax credit.
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Who's involved
- AAATracks vehicle market data and reports on national gas prices.
- Kelley Blue BookTracks vehicle market data and reports on average new EV prices.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- NissanSpeculative
Might face reduced demand and competitive position for its EV models.
- General MotorsSpeculative
Could see reduced demand for its electric vehicles due to sticker shock.
- HondaSpeculative
May experience negative effects on sales due to consumer price sensitivity in the EV market.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Gas price data tracked by AAA may influence Federal Reserve policyAAA's tracking of vehicle market costs could influence Federal Reserve monetary policy.Likely
- EV cost analysis relies on EIA data for electricity ratesThe analysis of electric vehicle ownership costs relies on specific electricity rate data provided by the Energy Information Administration.Likely
- High ev costs may curb demand for Honda vehiclesEV market cooling and high costs may reduce Honda's sales volume.Possible
- Cooling EV adoption may reduce demand for General MotorsCooling EV adoption and high sticker shock may reduce demand for General Motors' electric vehicles.Possible
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The entities involved
- AAA
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Kelley Blue Book
an Irvine, California-based vehicle valuation and automotive research company
Related events
- A manufacturer is tracking the average U.S. new-vehicle transaction prices in collaboration with Kelley Blue Book.
- Both CarGurus and Kelley Blue Book are tracking rising used car prices and market pressures.
- Experian reported auto finance market data while Kelley Blue Book provided vehicle valuation data.
- Market trends affecting EV pricing power are being analyzed, utilizing market pricing data for new vehicles involving Boyce, Telemetry, and Kelley Blue Book.
- Used prices for both Subaru and Mazda models are currently being tracked by Kelley Blue Book.