A Range-extended Electric Vehicles (RE-EV) combines a battery-powered motor with a small internal combustion engine or generator. The engine doesn’t drive the wheels in these types of EVs.
What the engine does here instead is that it generates electricity to recharge the battery when it’s low. By doing so, it extends the range beyond what the battery alone can deliver.
RE-EVs are great for long trips or areas with limited charging options. However, they still use fuel, so they emit some carbon when the engine runs.
A Battery Electric Vehicle, on the other hand, runs entirely on electricity. As no fuel is being used, there is no emission here. It relies on a large battery to power the motor. And once the battery is empty, the car needs recharging. Its range depends on the battery size and available charging infrastructure.
Compared to range-extended electric vehicles, battery electric vehicles are rather simpler and cheaper to maintain. However, range-extended EVs have the upper hand when it comes to serving in areas with limited charging options.
As for the examples, the Tesla Model 3 is a fully electric car, whereas the upcoming Scout EV is a prime example of a Range-extended EV.
Tesla Model 3 runs entirely on battery power. A large lithium-ion battery powers its electric motor, and it produces no tailpipe emissions, as it has no internal combustion engine.
Scout EV, on the other hand, combines electric driving with a gas engine for backup. And being a range-extended EV, Scout’s engine doesn’t power the wheels. Instead, it recharges the battery by acting as a generator, so the car always runs like an EV.
Another example of a range-extended EV is the BMW i3. It uses a small 2-cylinder gasoline engine to generate electricity when needed. For example, when the battery level goes below a certain level, its gasoline engine will kick in and start generating electricity. This adds range without sacrificing the electric driving experience, making it a smart solution for longer trips.
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Range-extended EVs vs Traditional Hybrids
Traditional hybrids combine gas and electric power differently. Both the gas engine and electric motor can drive the wheels. At low speeds, the electric motor often handles the load. When more power is needed, the gas engine steps in. Regenerative braking and the engine recharge the battery, so hybrids don’t need external charging.
Compared to the traditional hybrids, RE-EVs focus on maximizing electric driving, with the gas engine as a backup. The key difference is that a RE-EV offers more miles in electric mode than hybrids. Hybrids, however, prioritize fuel efficiency by seamlessly switching between power sources.
As we noted earlier, the BMW i3 Range Extender, a RE-EV, has a small gas engine that only recharges the battery when needed, keeping emissions low. The Toyota Prius, one of the leading names among traditional hybrids, does the opposite. Its gas engine is used more frequently, working alongside the electric motor for better overall efficiency. So, both technologies have their strengths, but RE-EVs lean closer to a full EV experience compared to traditional hybrids.
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Why are Manufacturers Turning to Range-extended EVs?
Manufacturers are turning to range-extended EVs for a reason: range anxiety. They know the fear of being stranded without a charger is real and preventing the masses from adopting the EVs.
A recent survey found that 58% of Americans see it as a key concern when considering an electric vehicle. RE-EVs solve this by offering extended range and making long trips possible, thanks to their use of a small gas engine as a generator.
Interestingly, benefits aren’t limited to off-roaders. Urban drivers, too, worry about infrastructure. Over 80% of potential EV buyers say public charging availability is insufficient.
Urban drivers often face limited access to home charging or long waits at public stations. And if they opt for RE-EVs, they won’t have to suffer from these challenges, making EV ownership less intimidating.
Another factor that makes RE-EVs a smart strategy for manufacturers is that they let consumers experience electric driving (instant torque, quiet rides, and fewer emissions) without losing the reliability of gas. They show hesitant buyers that EVs can work for them, even with imperfect infrastructure. Hence, until EV charging infrastructure improves and technology advances, RE-EVs will continue to act as a stepping stone towards a fully electric future.
Not Just for Off-Roaders
Although many people believe that RE-EVs are just for off-roaders, that isn’t true. While they do excel in remote areas, where there is a significant lack of charging stations, they also solve practical problems for urban drivers, as we already looked at above.
In fact, even in well-developed areas with sufficient charging infrastructure, things don’t always go as planned. A sudden change in plans or a longer-than-expected drive can leave drivers worried about range, but RE-EVs ensure the car keeps running without relying on the grid.
Overall, the versatility of RE-EVs is their real strength, and they’re not limited to adventurers or rural drivers.
Now, let’s look at top stock picks that are positioned to benefit significantly from growing interest in RE-EVs.
1. Scout Motors (A Part of Volkswagen Group) (VOW3.DE +1.55%)
Scout Motors, a part of the Volkswagen Group, is on the verge of shaking up the EV market. North Americans love trucks and SUVs, and Scout will address this demand head-on.
It is launching two models: Terra and Traveler. The Traveler can tow over 7,000 lbs, whereas the Terra can tow over 10,000 lbs. Both can haul nearly 2,000 lbs of payload. The range is impressive, too, as it can last 350 miles on a single charge, and if we factor in the extended-range version, it pushes past 500 miles.
Speed-wise, too, the Scout EV is a no-slacker. It can accelerate from 0-60 mph in as little as 3.5 seconds and has nearly 1,000 lb.-ft., delivering significant power for heavy-duty tasks.
Charging is equally advanced. Scout EV uses 800V architecture, supports up to 350 kW fast charging, and features bi-directional capability.
All these traits make range-extended EVs like Scout the go-to choice for regions that lack the necessary infrastructure, like an adequate number of charging stations. Interested in learning more about Scout EV? We have looked at it in detail in our article.
Backed by Volkswagen’s extensive resources, Scout is positioned to deliver quality EVs that stand out in the market. Volkswagen is fully committed to EVs, with billions invested in the transition, and Scout Motors will play a pivotal role in its North American strategy, addressing range anxiety with practical, rugged solutions.
On the revenue side, Volkswagen Group, the parent firm of Scout Motors, had mixed results in the first nine months of 2024. Sales revenue rose slightly to €237.3 billion from €235.1 billion in 2023. However, its automotive business shrank 1% due to lower volumes. Vehicle deliveries dropped 4% to 6.5 million. Although it did see an uptick in terms of vehicle deliveries in North and South America, it wasn’t enough to overcome the decline it experienced in Western Europe (-1%) and China (-12%).
Overall, Scout’s launch is a strategic move by Volkswagen to diversify and dominate in a region with one of the highest demand for EVs globally.
2. Li Auto (LI -2.6%)
Li Auto is a rising name in the Chinese RE-EV market. Its flagship model, the Li L9, is a full-size luxury SUV that excels in comfort and practicality.
The Li L9 features a dual-motor all-wheel drive system, delivering 449 horsepower and 620 Nm of torque. It accelerates from 0 to 100 km/h in 5.3 seconds, which is impressive for its size.
A 44.5 kWh battery offers 215 kilometers of electric-only range. For extended journeys, a 1.5-liter four-cylinder range extender boosts the total range to 1,100 kilometers.
Charging is pretty straightforward. DC fast charging takes the battery from 30% to 80% in 30 minutes, whereas a full AC charge takes 7.9 hours.
On the financial side, Li Auto delivered solid results in Q2 2024. Not only did vehicle deliveries hit 108,581, up 25.5% year-over-year, but its total revenue reached RMB31.7 billion (US$4.4 billion), a 10.6% increase from Q2 2023 and 23.6% higher than Q1 2024.
Of this figure, vehicle sales contributed RMB30.3 billion (US$4.2 billion), growing 8.4% year-over-year. Profitability, too, showed mixed trends. Gross profit was RMB6.2 billion (US$850 million), flat year-over-year but 16.9% higher than Q1 2024. Net income also fell to RMB1.1 billion (US$151.5 million), down 52.3% year-over-year but up 86.2% from Q1 2024.
Conclusion
Range-extended EVs tackle one of the biggest hurdles for electric vehicles: range anxiety. They combine the instant torque and quiet efficiency of electric driving with the reliability of a gas backup, making them a versatile choice for all kinds of drivers.
So, whether you’re commuting in the city or taking a long road trip, RE-EVs offer a safety net that pure EVs often lack. And until charging stations are widespread and batteries advance, RE-EVs provide a practical bridge to a fully electric future.
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