Ormat Technologies, Inc. (ORA), Clean Energy Fuels Corp. (CLNE) & Tesla Motors Inc (TSLA): 2 Clean Energy Buys, 1 Sell

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This is not a low risk investment. The company hasn’t made money in more than five years because of the costs associated with building out its natural gas network. The shares are a leveraged bet on a natural gas future for more aggressive investors.

Too expensive

Tesla Motors Inc (NASDAQ:TSLA) recently turned in its first profit. That’s impressive for a car company built from scratch and focused on making only electric cars. That said, the company makes a competitive vehicle, but it is expensive. Until it can create a car for the mass-market, it will likely have a hard time maintaining a profitable operation.

In addition, electric cars have a limited range and few options for refueling. Tesla Motors Inc (NASDAQ:TSLA) recently announced plans to build electric charging stations across the country. That’s an expensive proposition that suggests that profitability is likely to be fleeting over the near-term. However, in order for electric cars to truly catch on, someone has to build such stations.

While Tesla Motors Inc (NASDAQ:TSLA) has exciting technology, the share price advance from around $30 a share to $100 or so in less than a year is just too far too fast, especially when the outlook for continued profits is cloudy. Making matters worse, the company recently decided to stop providing information about its sales backlog. That’s a worrying sign.

Investors who have taken the ride up should pull some profits off the table while they still can.

Environmentally friendly

The three stocks above have vastly different angles on the environment. Ormat Technologies, Inc. (NYSE:ORA) is, at its heart, an electric utility with a fairly stable business that’s been hidden by one-time charges over the last two years. Clean Energy Fuels Corp. (NASDAQ:CLNE) is a bit of a high stakes bet on the industrial switch to natural gas fueled vehicles. So long as natural gas stays cheap, however, the switch appears to be catching on. Tesla makes great cars, but its gotten ahead of itself. Watch it for a major pullback.

The article 2 Clean Energy Buys, 1 Sell originally appeared on Fool.com and is written by Reuben Brewer.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Clean Energy Fuels Corp. (NASDAQ:CLNE) and Tesla Motors . The Motley Fool owns shares of Tesla Motors Inc (NASDAQ:TSLA). Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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