Bay Area Electric Car Market Could Benefit From Obama's Oil Goals

PALO ALTO (KCBS) – President Barack Obama's new goal of reducing foreign oil consumption by a third in the next 10 years has been met with enthusiasm by many in Silicon Valley, especially those who produce electric vehicles.

President Obama said when it comes to reducing domestic oil consumption, few breakthroughs are as promising as electric vehicles.

"That's why I am directing agencies to purchase 100 percent alternative fuel, hybrid or electric vehicles by 2015," he said. "All of them should be alternative fuel."

KCBS' Matt Bigler Reports:

Tesla Motors Vice President of Business Development Diarmuid O'Connell said this national push towards EV's is great news for the Palo Alto-based company.

"Policy support from Washington is helpful in setting context," said O'Connell. "But what's most important is developing compelling products."

Products like the company's new Model S Sedan, which is scheduled to hit the market next year.

But Rebecca Lindland, an auto industry analyst with IHS Automotive, said there's a big drawback to most electric cars.

"You have a very short range that you can drive that vehicle before you need to recharge it," said Lindland.

She said that's part of the reason consumers are more interested in hybrid cars, although those vehicles still only make up 3 percent of U.S. auto sales.

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