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AutoNation CEO Mike Jackson told CNBC on Tuesday that he believes so-called range anxiety has become less of a concern for Americans buying electric vehicles.
Concerns about the number of miles that could be driven before a battery needs to be recharged have long been seen as a barrier to EV adoption. But in an interview with “Squawk Box,” Jackson said Americans have better understood how to maximize the benefits of electric vehicles.
“Distance anxiety is dramatically disappearing because American ingenuity – they figured out how they live, how they’re going to use it, and that’s not a problem,” he said.
For the most part, people will be driving their electric vehicles on daily trips, Jackson said.
“Here’s what they like: They buy an electric car and they say to us, ‘You know what’s great? I never have to go to a gas station again, ”said the auto industry veteran. “They pretty much use the car within a 200 to 250 mile radius.”
This means they don’t need to search for public charging stations during their normal activities, he said. “Every time they get home, they plug it in for the night. That’s it. They’re done. They go out in the morning, it’s fully charged. They haven’t gone to a gas station.”
The situation is a bit different for longer trips, like a trip across the country, Jackson argued, adding that more investment is needed in infrastructure pricing.
“But most of the people who buy electric cars also have an internal combustion engine in their car portfolio and therefore for long distance driving they still use the [Chevrolet] A suburb that will take them all over America, “Jackson said.” For their daily use around their home or office, they are delighted to have an electric vehicle. “
Jackson’s comments follow a series of major developments in the automotive industry regarding electric vehicles.
General Motors announced in late January that it plans to end production of all diesel and gasoline cars, trucks and SUVs by 2035. And in early February, Ford, Crosstown’s rival, said it was increasing its production. investment in electric vehicles until 2025.
“We’re not going to cede the future to anyone,” Ford CEO Jim Farley told CNBC a day after the news about electric vehicles was released.
However, even with the exciting developments around the production of electric vehicles, Jackson said the industry transition will be long and the two types of vehicles will coexist for decades to come. “It’s not like switching from flip phone technology to a smartphone, where everything else is suddenly obsolete,” he said.
By 2030, Jackson said he expects about 20% of new vehicles sold to be electric, but only 6% of all vehicles on the road. “It’s a decades-long journey between the internal combustion engine and electrification, but it’s here. It’s happening. We are embracing it,” he said. “It’s exciting and we have great vehicles from all manufacturers.
Jackson’s comments on Tuesday came after AutoNation posted better-than-expected fourth quarter results. The Fort Lauderdale, Florida-based company reported quarterly revenue of $ 5.8 billion, while analysts had forecast $ 5.6 billion. Adjusted earnings per share of $ 2.43 beat Wall Street estimates by 42 cents.
AutoNation shares closed up 1% on Tuesday. The stock has risen almost 70% in the past 12 months.
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