Gas prices help drive demand for electric vehicles, but supply chain concerns remain

BAINBRIDGE ISLAND, Wa. – Service Manager Nolan Donahue has never seen more demand for electric vehicles in his five-plus years at Park West Mobility Works Service.

"On all sides, the demand is going nowhere but up," Donahue said.

"Fuel prices going up obviously drives the market for electric vehicles," Donahue said. "Bigger demand for delivery and bigger demand for customers wanting to keep their electric vehicles on the road."

HERTZ TO BUY UP TO 65,000 POLESTAR ELECTRIC VEHICLES OVER NEXT 5 YEARS

With gas prices at record highs, Donahue has been filling more orders for cars, vans and campers. Customers also want to replace their engines with electric batteries. 

STOCK FUTURES CAUTIOUS, OIL, GOLD LOWER, MEXICO SUSPENDS GAS SUBSIDY AS AMERICANS LOOK FOR DEALS

"People are wanting to put money into them to upgrade them," Donahue said. "To be able to hold onto them longer, drive them further."  

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Even though demand has been comparatively high, supply chain issues are making it hard to complete orders. 

"Anything we’re getting from overseas has just been more difficult," Donahue said. 

TESLA DELIVERIES ROSE IN QUARTER ELON MUSK CALLS EXCEPTIONALLY DIFFICULT

"Your demand ends up being 150% of what it was pre-COVID with a supply chain that’s running at 50-75% of what it was pre-COVID," added Maxwell Vehicles CEO Max Pfeiffer. 

Maxwell Vehicles supplies electric vehicles from coast to coast. Washington state, California and New York have been the top customers.  

CLICK HERE TO READ MORE ON FOX BUSINESS

Pfeiffer told FOX Business that completing orders on time isn’t going to get any easier.

"I don’t see supply keeping up with the increasing demand," Pfeiffer said. "It’s going to keep getting worse."