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EVs are not only more expensive to buy compared to gas vehicles, but owning and maintaining an EV is no longer more affordable

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In recent years, electric vehicles have become increasingly popular among Americans. This increasing trend has been constantly seen in recent years in year over year EV sales, and 2022 is expected to be the best year when it comes to EV sales. So far, the number of EV’s sold in Q1 and Q2 of 2022 pushed the numbers to new record highs.

There are two main reasons why people decide to switch from gas-powered vehicles to EVs. While buying an electric vehicle is far more expensive than buying a same-class gas-powered vehicle, the cost of maintaining an EV is lower compared to a gas vehicle, and electricity is cheaper than gas, which makes owning an EV more affordable in the long run. However, things have started to change recently, and EVs are no longer cheaper than gas vehicles.

The pandemic changed the whole automotive market. Car manufacturers and factories were closing due to the pandemic restrictions, but this was additionally fueled by the car industry’s projections that people wouldn’t be interested in buying new vehicles as a result of the uncertainty created by the pandemic. Just a few months had passed in 2020 when Americans started buying new vehicles like any other year before and car manufacturers realized that their initial forecast was inaccurate. But the damage had already been done, and there was no easy fix to the problem.

The demand for PCs and other electronic devices has skyrocketed since the start of the pandemic. Chip manufacturers switched their capacities to producing more electronic devices’ chips as car companies cancelled their orders. When car companies decided to re-activate their previous orders, it was already too late. The chip shortage, as well as the supply chain issues, resulted in a vehicle shortage, a problem that additionally resulted in skyrocketing vehicle prices.

Gas vehicles were not the only type of vehicle impacted by the chip shortage and supply chain issues. It took a while, but EVs have also followed the same path in terms of prices. For example, Tesla has increased its price significantly in the past few months. Although the primary reason for price hikes is supply chain issues, high demand doesn’t help. Low maintenance costs and cheap electricity have resulted in higher-than-ever demand for EVs since the start of the year. The high demand also impacts the prices, which is the reason why Tesla is seeing record profits this year.

However, the whole automotive market has changed, and that applies to electric vehicles too. Since the beginning of 2022, gas prices have risen everywhere across the United States, and many people have decided to buy an electric vehicle. But not only have EV prices risen, but other costs of owning one have also risen.

Tesla is the most popular EV brand in America. According to Electrek, Tesla’s Model 3 and Model Y make up more than 60% of the country’s current market share for electric vehicles. But Tesla also has a huge network of EV chargers across the country, but the electricity is no longer as cheap as it once was.

On several occasions, Tesla claimed that the company doesn’t make money from selling electricity, but those claims are not valid anymore. Tesla, in some areas, charges per hour no matter how much electricity you have used, while in other areas, the company charges per kWh. However, both options now cost way more, and in some cases, EV owners say they are paying double what they once used to pay.

EV owners can still charge their vehicles at home. Charging a vehicle at home will take much longer, but will also be cheaper than using a charger. Installing 240V outlets or buying upgraded chargers will probably help, but again, EV owners who decide to charge their cars at home will probably have to charge their cars almost every night.

California has already announced that the state is completely moving toward electric vehicles. In August, CARB said it would require all new vehicles sold in California by 2035 to be electric or plug-in hybrid electric vehicles (PHEVs) after Governor Gavin Newsom issued a 2020 executive order directing the move. Other states will most probably follow this step too.

EVs are definitely the future, but owning and maintaining one is not as affordable as it once was. High electricity prices, increased maintenance prices, and significantly higher prices of new electric vehicles currently make electric vehicles more expensive to own than gasoline vehicles.

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