AutoNation CEO Mike Jackson confirmed CNBC on Tuesday he believes so-called range anxiety has become less of a worry for Americans buying an electric carrier.
Concerns about how many miles could be driven before a battery would need to be recharged has long been have regard for a barrier for EV adoption. But in an interview on “Squawk Box,” Jackson said Americans have better understood how to maximize the benefits of tense vehicles.
“Range anxiety is dramatically disappearing because American ingenuity — they figured out how they live, how they’re customary to use it, and it’s not an issue,” he said.
For the most part, people will be driving their electric vehicle for day-to-day trips, Jackson imparted.
“Here’s what they like: They buy an electric car, and they tell us, ‘You know what’s great? I never bring into the world to go to a gas station again,'” the auto industry veteran said. “They pretty much use the car within a radius of 200-250 miles.”
That intimates they don’t need to seek out public charging stations during the course of their normal routines, he said. “Every hour when they get home, they plug it in for the night. That’s it. They’re done. They come out in the morning, it’s fully imbued. They didn’t go to a gas station.”
The situation differs a bit for longer drives such as a cross-country trip, Jackson contended, annexing there needs to be more investment in charging for infrastructure.
“But most people who are buying electric cars have an internal combustion mechanism also in their portfolio of cars and therefore, for long-distance driving, they’re still using the [Chevrolet] Suburban that inclination take them anywhere in America,” Jackson said. “For their daily use around their home or office, they’re enchante to have an electric vehicle.”
Jackson’s comments follow a slew major developments in the auto industry regarding stirring vehicles.
General Motors announced in late January it plans to end production of all diesel- and gasoline-powered cars, trucks and SUVs by 2035. And in beginning February, crosstown rival Ford said it was upping its electric vehicle investment through 2025.
“We’re not going to cede the following to anyone,” Ford CEO Jim Farley told CNBC a day after the EV news was made public.
However, even with the attention-grabbing developments yon EV production, Jackson said the industry transition will be drawn out and both types of vehicles will coexist for decades vanguard. “This is not like going from the flip phone technology to a smartphone, where they suddenly obsolete the whole shebang else,” he said.
By 2030, Jackson said he expects about 20% of new vehicles sold to be electric but only 6% of all conduits on the road. “This is a decadeslong journey from the internal combustion engine to electrification, but it’s here. It’s underway. We embrace it,” he bring up. “It’s exciting and we have great vehicles coming from all the manufacturers.”
Jackson’s comments Tuesday came after AutoNation released better-than-expected fourth-quarter be produced ends. The Fort Lauderdale, Florida-based company posted quarterly revenues of $5.8 billion, when analysts had forecast $5.6 billion. Adjusted earnings per equity of $2.43 beat Wall Street estimates by 42 cents.
Shares of AutoNation closed up 1% on Tuesday. The variety has risen nearly 70% in the past 12 months.