Tesla Orders Surge 100% As People Turn To Electric Cars Amid High Gas Prices
Tesla is reportedly seeing increased order rates in the United States this week after rising gasoline prices helped some drivers switch to electric vehicles to avoid paying astronomical sums at the pump.
A new report from electric Sources familiar with Tesla’s order rate say they’ve seen increases “in various parts of the US this week”. The report also states that Tesla has seen a 100 percent increase in order rate this week in areas of the country affected by rising gas prices.
Gas prices have risen above $4 per gallon in most of the country, with prices appearing to rise above $5 per gallon in some areas. AAA data shows that the average cost of a gallon of gas is now $4,318, up about 60 cents since last week, with prices about $1.50 more than a year ago. On Monday, AAAThe average gas price in the US was $4.17.
The increase in gas prices was due to the crisis between Ukraine and Russia. As prices continue to rise relatively wildly, drivers make an informed decision to avoid paying high prices for petrol cars. Instead, consumers are switching to electric models that are still costly to charge but far below the price of a petrol car.
Although CEO Elon Musk recommended an increase in US gas and oil production last week, Tesla continues to benefit from the rise in gas prices. “Extraordinary times require extraordinary measures,” Musk said. An increase in drilling will reduce reliance on oil and likely push gas prices down for the time being. However, consumers are clearly choosing to switch to EVs.
Elon Musk says he’s calling for ‘extraordinary times’ for US need to increase oil and gas production
Tesla recently took the top three places in the electric vehicle registration figures for January 2022. experience and Automotive News. The Model Y, Model 3, and Model S landed on all three podium spots, respectively. Model Y and Model 3 accounted for more than 60 percent of total EV registrations in the United States in January.
While the increase in orders is a good thing for Tesla and the transition to electric vehicles, the automaker is already struggling with a rather long backlog for vehicle orders. While Tesla’s upcoming Gigafactory Texas is expected to begin deliveries after the Austin-built Model Y is approved, the electric automaker will have additional assistance in helping drivers get off the gas pump once and for all.
Despite the renewed interest, there’s one big problem: keeping production up with demand has never been Tesla’s strong suit. While a new flood of orders may send a strong signal to investors, Tesla isn’t going to be able to boost its production numbers overnight.
It is a sign of the times, with or without Russia’s invasion of Ukraine causing gas prices to soar. Gasoline powered cars are probably not long for this world and the electric car will likely win as the world slowly runs out of fossil fuels.
In the short term, countries will have to figure out a way to keep engines going without Russia. Oddly enough, Musk himself recommended over the weekend that “we need to increase oil and gas output immediately” for the US to wean itself off of Russia’s supplies, quipping that “extraordinary times demand extraordinary measures.”
“Obviously, this would negatively affect Tesla,” he added, “but sustainable energy solutions simply cannot react instantaneously to make up for Russian oil and gas exports.”