Over the past few weeks, the stock market has taken a beating.
Stocks are up a little one day and down a lot more the next day and the next day…
But there’s something that isn’t going down: the cost to fill up your gas tank.
This week, the national average gas price hit a new record: $4.40 per gallon.
In South Florida, where I live, it’s even higher…
It’s out of control!
Unfortunately, it’s not going to get better until global oil companies ramp up production to fill the massive supply gap.
As we head into the summer, demand for gas will continue to surge.
Investment bank Credit Suisse forecasts a supply deficit of about 2.2 million barrels a day in the second half of the year.
So prices will continue to go up.
To bypass the high price of gas, 60% of American car buyers are now considering getting an electric vehicle (EV).
It’s Cheaper to Charge Up Than to Gas Up
Inflation, chip shortages and supply chain challenges have pushed the average price of a new car to over $47,000.
But you can find several affordable EVs these days for under $45,000.
Nissan, Kia, Ford and Volkswagen are just a few of the brands with EVs at this price point.
And there are several models on the way that are even cheaper.
Since EV prices are at a favorable level, the next concern is fueling costs.
This is an area where EVs are the clear winner.
According to Kelley Blue Book, Americans drive 1,183 miles per month on average.
Even with a fuel-efficient car that yields 30 miles per gallon, that’s 39 gallons per month.
And at the current average price of $4.40 per gallon, that comes out to $172 each month.
Now let’s take a look at EVs.
Most EVs get around 3 miles per kilowatt-hour (kWh).
This means you’ll need 394 kWh of electricity per month.
With the average U.S. household cost of electricity at $0.14 per kWh, it would cost $55 each month.
In other words, charging only costs about a third of what it costs to gas up a car.
EVs Are Now the Cost-Effective Choice
These types of savings are starting to have an effect on the American car buyer.
A survey from CarGurus tracks this shift in consumer sentiment among active buyers.
At the end of 2021, about 30% of Americans said they were likely to buy an EV within five years, and 52% said they were likely to buy one within 10 years.
Then in February, tensions started to rise between Russia and Ukraine, and it resulted in the war.
Gas prices rose in response, and so did consumer sentiment toward EVs.
At the end of last month, 40% said they were likely to own an EV in five years, and 60% said they would likely own one in 10 years.
EVs are slowly becoming the more affordable option. And that means we’re at a turning point with EV adoption.
This brings up a great opportunity to profit off of this trend before it really takes off.
From battery producers to EV metal miners, there are so many ways to invest in the future of EVs.
Check out Ian King’s Strategic Fortunes service for some of the best ideas to invest in this space.
Research Analyst, Strategic Fortunes
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