They’re more expensive and the cost differential isn’t offset by the gas savings. Hybrids don’t solve any real problem in the market: gas is plentiful thus relatively cheap. You don’t generally save the cost difference in gas savings unless you keep the car longer than is typical. Even in Europe where gas is far more expensive and taxed, hybrids don’t make financial sense in most cases: hybrids are more expensive and a higher price car means higher sales taxes, offsetting gains from saving gas. A diesel Peugeot 5007 gets over 40 miles to the gallon, which is approaching hybrid levels for that size vehicle but a hybrid can cost €8000 or so more. No way during the normal lifespan would you save that much in gas. Also, if you are financing, you are paying interest on that higher price, thus making the lack of cost savings even more pronounced.

Hybrid big rigs on the other hand, could be game changing. A Prius is a statement car more than an actual exercise in frugality. A Honda Civic is a nicer car, doesn’t look like a squashed bean and costs less with more features and plenty of fuel-efficiency. But then a Civic doesn’t give people the same sense of superiority as does a Prius.

In the Bay Area replace Prius with Tesla and Civic with Audi and you can make similar arguments.