High fuel prices, driven by geopolitical conflicts including the war in Iran and Russia's invasion of Ukraine, are contributing to a stabilized outlook for EV sales in the US. These events have disrupted oil refining capacity and shipping routes, increasing costs for gasoline and diesel.

The crack spread—the price difference between crude oil and refined products—has significantly widened, rising by about $35 per barrel since the conflict in Iran began. This has kept crude prices relatively low while raising prices at the pump.

Despite the elimination of the federal EV tax credit last year, which caused a sales crash, some automakers like Subaru and Harbinger saw improved year-on-year EV sales. Ford is proceeding with the Fathom, anticipating faster assembly and production rates compared to previous gas vehicles.