The Iran War Sounds The Death Knell Of EVs

In this Issues & Insights article, the I&I Editorial Board argues that the Iran war and higher gasoline prices should have boosted electric vehicle demand but instead exposed just how dependent EV sales remain on subsidies and political pressure.

• The article says April EV sales fell 6.2% from March and 23% from the previous year, citing Cox Automotive data.
• Overall car sales also declined, but by much smaller margins, suggesting EVs underperformed the broader auto market.
• The authors argue that consumer interest in EVs has not translated into purchases, even though searches for EVs reportedly increased.
• The piece claims EV market share has been heavily dependent on federal taxpayer subsidies, with sales weakening after those subsidies ended.
• California is presented as the clearest warning sign for the EV agenda, with new EV registrations reportedly down 40% in the first quarter compared with Q1 2025.
• The article notes that even with California gas prices above $6 per gallon, consumers still appear reluctant to embrace EVs at the levels policymakers expected.
• Rather than pushing buyers into fully electric vehicles, higher fuel prices may be steering them toward hybrids, which offer better mileage without charging-station hassles.
• The authors argue that environmental activists oppose hybrids because they undermine the forced transition to fully electric cars.
• The article concludes that unless EV technology improves dramatically or gas prices remain extremely high, EVs are likely to remain a niche product rather than the future of American driving.

Read the full story: https://issuesinsights.com/2026/05/21/the-iran-war-sounds-the-death-knell-of-evs/