AutoNation CEO Mike Jackson told CNBC on Tuesday that he believes the so-called range anxiety has become less of an issue for Americans buying an electric vehicle.
Concerns about how many miles can be traveled before a battery needs to be recharged has long been considered a barrier to the use of electric vehicles. But in an interview on “Squawk Box,” Jackson said Americans have a better understanding of how to maximize the benefits of electric vehicles.
“Range anxiety is disappearing dramatically because American ingenuity – they’ve figured out how they live, how they’re going to use it, and it’s not a problem,” he said.
For the most part, people will drive their electric vehicle for day-to-day trips, Jackson said.
“This is what they like: they buy an electric car and they tell us, ‘You know what’s great? I’ll never have to go to a gas station again,'” said the automotive veteran. “They use the car almost within a radius of 200 to 250 kilometers.”
That means they don’t have to search for public charging stations during their normal routines, he said. ‘Every time they come home, they plug in the plug for the night. That’s all. They are ready. They come out in the morning, it’s fully charged. They didn’t go to a gas station. ‘
The situation is a bit different for longer journeys, such as a cross-country trip, Jackson argued, adding that more must be invested in charging infrastructure.
“But most people who buy electric cars also have an internal combustion engine in their portfolio of cars, so they still use the long-haul [Chevrolet] “Suburbs that will take them all over America,” said Jackson. “For their everyday use around their home or office, they are delighted to have an electric vehicle.”
Jackson’s comments follow many important developments in the automotive industry related to electric vehicles.
General Motors announced in late January that it plans to discontinue production of all diesel and gasoline cars, trucks and SUVs by 2035. And in early February, Ford rival Ford said it would increase its investment in electric vehicles through 2025.
“We’re not going to hand over the future to anyone,” Jim Farley, Ford CEO, told CNBC a day after the EV news went public.
But even with the striking developments around electric vehicle production, Jackson said the transition in the industry will take place and both types of vehicles will co-exist for decades to come. “This is not like going from flip phone technology to a smartphone where they suddenly make everything else obsolete,” he said.
Jackson said he expects about 20% of new vehicles sold to be electric by 2030, but only 6% of all vehicles on the road. “This is a decades-long journey from the combustion engine to electrification, but it’s here. It’s on the way. We embrace it,” he said. “It’s exciting and we have great vehicles from all manufacturers.”
Jackson’s comments came Tuesday after AutoNation posted better-than-expected fourth-quarter results. The Fort Lauderdale, Florida-based company posted quarterly revenue of $ 5.8 billion, while analysts had forecast $ 5.6 billion. Adjusted earnings per share of $ 2.43 exceeded Wall Street estimates by 42 cents.
Shares of AutoNation closed 1% on Tuesday. The stock is up almost 70% in the last 12 months.