Tesla (TSLA) order rates are rising in the US as gas prices are driving people to electric cars

Tesla is seeing an increase in its order rate in the US, according to sources familiar with the matter, as record gas prices are driving more people to electric vehicles.

However, this will not affect its deliveries significantly as the automaker is still production-constrained.

Oil and gas prices have risen significantly amid the crisis in Ukraine and sanctions to pressure Russia to end its invasion.

Crude oil is now over $100 a barrel, and the average gas price at the pump in the US was $4.25 a gallon – $5 a gallon in some regions.

It’s going to affect nearly every industry, but it’s also a significant enough increase that many people are having to change their budget for gas.

Every time they go to the gas station, they are reminded that it costs many more dollars to go to work in a geopolitical situation.

Now many of those who are in a position to buy a new car are turning to electric vehicles. Some because of frustration, others because they’re making cost of ownership calculate and feel it’s actually cheaper than a gas-powered car.

Tesla has long been the biggest EV brand in America. Tesla vehicles account for about 80% of all electric cars in the country, and surprisingly the company is beginning to feel the increase in orders from gas price pressures.

Sources familiar with the matter told electrek That Tesla is seeing a jump in orders in many parts of the US this week.

A source familiar with Tesla’s order rates said the automaker saw it rise 100% this week compared to some parts of the country, particularly affected by gas prices.

However, this jump in orders is not going to affect Tesla’s performance in the short term as the automaker already has a significant backlog of orders and is production-constrained.

In the US, Tesla is guiding July 2022 deliveries for the base Model 3 and September 2022 new orders for the popular Model Y.

The start of production and delivery in Gigafactory Texas could help later this year, but the delivery deadline is expected to extend.

Other automakers are also expected to see increased demand for their EVs, such as Hyundai for the Ioniq 5 and VW with the ID.4, but those vehicles also have limited supplies and long waiting lists.

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