Here's a simple piece of financial advice for anyone wincing at the gas pump lately: just buy an electric car. At least, that's the straightforward pitch from investor Ross Gerber of Gerber Kawasaki.
With war escalating in the Middle East and oil prices shooting up, Gerber took to social media platform X on Wednesday to tout EVs as a direct hedge against your cost of living. "Just buy an EV and your cost of living will go down by thousands of dollars a year," he posted. He doubled down, claiming that "driving a gas car" can be up to "4-5 times more expensive" than driving its electric counterpart. His final tip? "Lots of great EVs at good prices online."
It's not hard to see why the topic is top of mind. According to the American Automobile Association (AAA), the national average for a gallon of gasoline was $3.842 on Wednesday. But that's just the average. In states like California and Hawaii, drivers are already well over the $5 threshold, paying $5.561 and $5.024 per gallon, respectively.
The price spike is drawing political fire. Senator Elizabeth Warren (D-Mass) shared that gas prices were up 27% in a month's time. California Governor Gavin Newsom (D) also slammed the Trump administration for the rising costs at the pump.
Meanwhile, the root cause—oil prices—continues its climb. Brent crude oil surpassed $108 a barrel after an Israeli strike on Iran's South Pars natural gas processing complex. West Texas Intermediate (WTI) crude wasn't far behind, surging 2.3% to $98.15.
The geopolitical backdrop is getting messier by the hour. Israel announced the death of Iran's secretary of the Supreme National Security Council, Ali Larijani, following a ballistic missile strike. The country also stated that Iran's Minister of Intelligence, Esmaeil Khatib, was killed.
In retaliation, Iran has since targeted Qatar's Ras Laffan refinery, the country's main gas facility. Qatar's government reports the facility has sustained significant damage. So, while Gerber's advice might sound like a sales pitch, it's landing in a market where the traditional alternative—gasoline—is getting more expensive by the day, thanks to forces far beyond the local gas station.
