It remains to be seen whether the U.S. is in store for a Jetsons-esque future like that dreamed up for the year 2062 by the fortune-tellers at Hanna-Barbera. If the current state of electric vehicles is any indication, however, the age of the flying car will have a long, uphill battle towards fruition.
Down here on the ground, car manufacturers, governments and consumers are doing their best to navigate the various carrots and sticks involved in embracing EV technology, from climate benefits, cost savings and federal incentives to state-level policy hindrances and more fundamental concerns about practicality. As for where the Natural State stands on the subject — well, it depends on who one asks.
“The appetite is not great, even though we have seen an uptick in Arkansas,” said Bruce Gilby, general manager of Parker Lexus in Little Rock. “The tax incentives have helped, especially for the commuter community.”
Bruce Gilby
While demand is growing, electric vehicles remain an inherently niche option in a predominantly rural state such as Arkansas. They nevertheless make economic sense for some buyers, said Lauren Waldrip, executive director of the Arkansas Advanced Energy Association.
“For example, the average EV owner can save up to $2,800 annually on fuel costs alone, not to mention reduced maintenance expenses,” she said. “These savings are especially attractive to urban and suburban drivers who have better access to charging infrastructure.”
Lauren Waldrip
Lexus sales associate Joshua Pardee cited a figure that the state is on track to see a 140 percent increase in registered EVs over 2023, indicating a genuine if not yet fully realized interest.
“In my opinion, I think a lot of Arkansans are already getting on board,” Pardee said. “Arkansas is ranked in the top 10 when it comes to energy costs, so charging at home can save you a lot of money. The average cost to fully charge at home is less than $10.”
Joshua Pardee
Those fuel savings and avoiding trips to the gas station altogether are a stronger pull than that of federal tax incentives in the opinion of sales associate Jesse Pastor. Even consumers with environmental motivations for considering an EV need “at least 300 miles of range to feel comfortable,” he said. In addition to the time it takes to charge, Pardee added, the most frequent hesitation the dealership hears from prospective buyers is range.
Key to addressing that “range anxiety” is improving the state’s charging infrastructure. Even as the cost of the cars themselves has decreased in recent years, potential buyers in Arkansas remain skeptical — and rightly so — over the idea that they might be stranded miles away from the nearest place to plug in. Accessibility for more than just the major metros has been top of mind for some, especially at the Arkansas Department of Transportation.
Jesse Pastor
Earlier this year, ARDOT awarded nearly $15 million for 19 statewide charging station projects as part of the larger National Electric Vehicle Infrastructure Formula Program from 2021. Authorized by the Infrastructure Investment and Jobs Act, the NEVI program provides funding for projects to build a national network of electric vehicle charging stations along federally designated alternative fuel corridors by 2030. Arkansas is set to receive $54.1 million from the NEVI program between 2022 and 2026. The funding provides up to 80 percent of the cost to build each station; the rest comes from the private sector. Waldrip called the state’s investment a “critical step in expanding charging access.”
“These investments, backed by federal funding and strong state leadership, are creating a network that supports rural and urban drivers alike,” she said. “Gov. [Sarah Huckabee] Sanders has ensured these funds are being used effectively to drive economic growth.”
Pastor, on the other hand, posited that charger availability will respond to demand rather than vice versa. When every EV gets at least 300 miles of range, he said, he expects charging stations to start to pop up around the state.
“Arkansans are very pragmatic people,” Pastor said. “If it makes sense to the core, Arkansans will adopt something. Right now, it simply doesn’t make sense due to range concerns.”
The AAEA has been working to support incoming investments and help build out the state’s charging networks, ensuring that EVs are a practical option for Arkansans who choose them, Waldrip said. Electric vehicles have also seen faster adoption among industries with large fleets, such as logistics and retail, she added. EVs offer these companies significant cost savings and operational efficiencies.
“Companies like Walmart, for example, are setting a precedent by incorporating EVs into their operations, achieving both economic and environmental benefits simultaneously,” Waldrip said.
While charging projects come down the pipeline, there is still the question of federal incentives and state-level policies affecting the rate of adoption. According to a release from the U.S. Department of the Treasury, the Biden administration’s Inflation Reduction Act created a mechanism to make a clean vehicle tax credit available at the point of sale rather than when buyers file taxes. An October announcement between the department and the Internal Revenue Service stated that “consumers have saved more than $2 billion in upfront costs on their purchase of more than 300,000 clean vehicles since Jan. 1, 2024.”
Although consumers are hesitant to fully embrace electronic vehicles, hybrids remain a top choice at Lexus.
The future of incentives on the federal level is uncertain, however, and Axios reported that the incoming Trump administration is “reportedly expected to pursue the demolition of electric vehicle tax credits that provide discounts of up to $7,500 on new EVs.” Opinions vary, but at least some analysts think the potential of repeal might spur those on the fence to buy while they can still qualify for the credit, while others are concerned about the repercussions on promised investments in factories, battery plants and mineral facilities from the automotive industry if EV sales take a hit in the credit’s absence. Still, incentives are not the sole indicator of future consumer demand.
“Incentives have a role in encouraging emerging technologies and mitigating potential perceived risk, but they must be balanced with economic sustainability,” Waldrip said.
“With the new administration, I think it will be a more sensible approach instead of mandates,” Gilby said. “[Lexus parent company] Toyota is building a battery plant that will produce solid state batteries that will be lighter and charge faster. As manufacturers get better at the range and charging, the consumers will be more willing to consider EVs.”
The Arkansas Advanced Energy Association helps members navigate these shifting national and state policies with a specific focus on grid modernization, workforce development and expanding EV infrastructure, Waldrip said. The group is preparing for an energy landscape that balances the economic benefits of EVs with consumer needs for reliability and security, all the while ensuring that the Natural State remains a competitive force.
“The next administration will have a significant impact on the EV market, particularly through tariff policies, federal incentives and regulatory changes,” Waldrip said. “A balanced approach that supports innovation, like Elon Musk’s leadership in streamlining EV production and promoting domestic manufacturing, could drive economic growth and strengthen national security by reducing reliance on foreign supply chains.”
The association is also interested in removing state-level barriers to widespread adoption, such as a law that mandates that EVs be purchased through traditional dealerships rather than directly from manufacturers, Waldrip said. The law not only limits consumer choice, she said, but prevents the state from capturing the economic benefits of EV sales. Reforming it would stimulate local economic growth, in addition to encouraging more Arkansans to consider electric vehicles.
“This outdated law hinders economic growth by sending EV sales — and the accompanying tax revenue — out of state,” she said. “Consumers should have the freedom to purchase directly, which aligns with AAEA’s commitment to free and fair markets.”
As for Lexus, the brand currently offers one all-electric vehicle, the RZ, and has more options available across its plug-in hybrid and hybrid models. Lexus will have EVs across almost its entire portfolio in the next few years or so, Gilby said, and the dealership already has four charging stations and staff trained on selling and servicing EVs. The brand’s hybrids and plug-in hybrids remain the consumer’s top choice thanks to offering “the best of both worlds” for drivers. In Arkansas, pragmatism wins the day over chasing the next big thing, meaning that Arkansans are likely to come around to EVs on their own time and only when it makes as much sense for their wallets and commutes as it does the environment.
“Despite federal efforts to accelerate the transition to EVs, widespread acceptance will take time,” Waldrip said. “A rapid transition would strain our grid, which is not yet equipped to handle such a shift. Gradual adoption allows utilities to prepare responsibly and ensure reliability while maintaining affordability, but we cannot afford to delay those efforts any longer.”
