Untrue. Let us take a car example. I as CEO want to move our product from place A to place B. I also want to move myself from place A to place B.
You're picking a case where you're assuming that transport is independent of everything else. If everything were like that then, sure, managers wouldn't have to know anything, and MBAs might actually make the best executives.
In many real cases, parts of the business are all connected and there aren't necessarily dividing lines. For instance, if you're having labor trouble, perhaps a fleet of trucks will be more vulnerable to strikes than rail. But perhaps your product will spend more time sitting in a hot car with real, which could be an issue if it's heat sensitive.
These are just example to fit in with your car analogy and may not be plausible. But in real life there are often cases where there aren't clean interfaces between problems, and a CEO who knows the details can ask better questions and better anticipate problems.
And that is often the problem: People who think they know something about the technology will ask for the wrong things and then are surprised they get the wrong answers.
Maybe you are right about the psychology in some cases, but there seems to be a simple response to this. The ideal is to know (not just think you know) the techology AND ask the right questions.
Very few CEOs get this. Very few are able to let go and just trust the people in their team to be qualified in their field.
Trust should be rational. If you have no idea what your people are doing it'll be harder to trust them.