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EV Demand Surges as Fuel Costs Drive Purchase Decisions

Electric vehicle demand is climbing as elevated fuel prices shift consumer motivation from environmental concerns to economic practicality, according to Polestar. A major disruption at the Strait of Hormuz, which typically handles roughly one-fifth of global oil supply, has pushed crude futures higher. West Texas Intermediate is trading near $101 per barrel and Brent crude at $106. The shift has created what Polestar calls "pump anxiety," replacing traditional range concerns as the primary driver of EV adoption. Polestar reports strength in both new and used EV segments as consumers weigh fuel expenditures against vehicle purchases. "In the past, people considered EVs for idealistic reasons, and now the decision is all about money," Polestar CEO Michael Lohscheller told CNBC. However, the sector faces headwinds including intensified competition, tariff pressures, and market uncertainty in key regions, tempering overall optimism.