High Oil Prices Are Driving an EV Boom. Who's the Next Winner After Tesla?

By Jeremy Bowman – Apr 23, 2026 at 11:30PM ESTKey PointsTesla just confirmed the EV boom being driven by the spike in oil prices.If oil prices remain elevated, alternative energy companies will benefit.GE Vernova and Union Pacific look well-positioned as well. Oil prices spiked when the U.S. attacked Iran and have been elevated since then as the Strait of Hormuz has remained closed. The effects of $4/gallon gasoline in the U.S, higher diesel prices, and even higher fuel prices in Europe, Asia, and other parts of the world are shifting demand patterns. Among the winners have been alternative energy companies that can help consumers and businesses save money. One of the biggest ones is Tesla (TSLA 3.47%), and we got an update from the EV maker Wednesday night. The market initially cheered the results, sending the stock up higher before it fell on CEO Elon Musk's forecast of a "very significant" capex increase this year. However, the EV business delivered strong results. Automotive revenue was up 16% to $16.2 billion, lapping a quarter in which Tesla experienced a backlash due to Musk's work with the Trump administration under DOGE. Among the factors driving the strong EV sales were higher oil prices, as the company noted a surge in Europe, with deliveries up more than 150% quarter-over-quarter in countries like France and Germany. The Asian market was strong as well, with Japan and South Korea returning to growth. The company also reported its highest Q1 order backlog in more than two years. CFO Vaibhav Taneja said, "The recent increase in gas prices has had a positive impact on the order rate," but also the improvement began before the increase in gas prices. What is clear is that Tesla isn't the only EV company benefiting. Electric car sales jumped 51% in continental Europe, and EV sales also soared in Asia, with registrations more than doubling in South Korea in March. Image source: Getty Images. 2 other alternative energy stocks winning from high oil prices The leading EV maker is one company that's benefiting from the jump in oil prices, but there are others that look well-positioned to capitalize on elevated prices. GE Vernova (GEV +2.09%), for example, has been a standout winner since the former GE broke up two years ago, but the energy infrastructure company is well-situated for higher oil prices as alternative and renewable energy make up a significant part of its business. Its wind power segment generates rougly 30% of its revenue. Additionally, its strength in gas turbines is an attractive alternative to oil-based electricity generation in the current environment. ExpandNYSE: GEVGE VernovaToday's Change(2.09%) $23.59Current Price$1151.15Key Data PointsMarket Cap$309BDay's Range$1134.00 - $1181.7252wk Range$356.94 - $1181.95Volume132KAvg Vol2.7MGross Margin20.16%Dividend Yield0.13% Railroad giant Union Pacific (UNP +8.77%) is also well positioned to benefit from high oil prices, as railroads are a more cost-effective mode of shipping than trucking, especially when prices are elevated. Union Pacific already operates in a duopoly in the western half of the U.S. with BNSF and generates huge operating margins. The stock jumped on its first-quarter earnings report as it reported an adjusted operating margin of 40.1%, and it has the pricing power to continue to deliver strong results in an inflationary environment. The ability to raise prices without losing customers is a key advantage during a time of geopolitical uncertainty.

While Union Pacific isn't a high-growth stock, it makes up for it with a wide economic moat and reliable dividend income. Read NextApr 22, 2026 •By Howard SmithWhy GE Vernova Stock Hit an All-Time High TodayApr 22, 2026 •By Motley Fool TranscribingGE Vernova (GEV) Q3 2025 Earnings TranscriptApr 22, 2026 •By Motley Fool TranscribingGE Vernova (GEV) Q2 2025 Earnings TranscriptApr 22, 2026 •By Motley Fool TranscribingGE Vernova (GEV) Q1 2026 Earnings TranscriptApr 15, 2026 •By Matthew BenjaminNuclear Is the Energy Story of 2026. Here Are 3 Stocks to Own All Year.Apr 14, 2026 •By Matt DiLalloBest Climate Change Stocks for 2026 and How to InvestAbout the AuthorJeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011.

Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.TMFHoboX@TMFBowmanStocks MentionedGE VernovaNYSE: GEV$1,151.15(+2.09%)+$23.59Union PacificNYSE: UNP$271.26(+8.77%)+$21.86TeslaNASDAQ: TSLA$373.72(-3.56%)-$13.79*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.