Shades of Green: Tesla Motors Inc (TSLA) and Elon Musk

Page 1 of 2

The Growing Acceptance of Electric Vehicles

One of my favorite pastimes recently is to see just how efficiently I can drive my car. Throughout the summer I get 10 miles to the gallon more than the 43/40 miles per gallon that the window sticker advertised. But, that’s in a gas-electric hybrid. I wonder what I’d be able to do in an electric vehicle.

It took a few years before I decided to buy my hybrid. Somewhere in the back of my mind, I believed that hybrid cars would fall through the cracks of history like the Betamax and Laserdisc, leaving me stuck with a vehicle, which no one would be able to service.

Tesla Motors Inc (NASDAQ:TSLA)It never happened.

There were some green reasons I bought my hybrid — both environmental shades and cash shades. But, regardless of one’s opinions on the source of global warming, the value of carbon credits, or the importance of recycling, everyone likes to save money and feel more secure.

I think that electric vehicles (EVs) are poised to satisfy both of those interests.

People are getting charged up

The subject of EVs is becoming an increasing part of the national conversation. Motor Trend named the Tesla Motors Model S as the 2013 Car of the Year, and Mayor Michael Bloomberg, in a recent State of the City address, announced plans for creating 10,000 public parking spots (charging stations) for electric vehicles over the next 7 years. To put that in perspective, there are currently about 15, 989 non-residential charging outlets nationwide.

In addition to the high price tag of EVs (which is consistently dropping), many people are hesitant to buy the cars for fear of running out of charge during a trip. This issue caused a firestorm in the media when a NY Times reporter revealed that he suffered from this problem on a recent test drive. Elon Musk, Tesla Motors Inc (NASDAQ:TSLA)’s CEO, retaliated on Twitter, which prompted another article from the reporter, which prompted another response from Musk, who is proving how sensitive he is to assuaging the public’s fears of EVs.

These “running out of charge” fears during a trip sound familiar.

It is reminiscent of people’s reluctance to embrace natural gas vehicles due to the few stations, which supply CNG or LNG. Many consumers want to wait for a greater number of stations to be built before they switch over, but companies are reluctant to build stations, which offer natural gas because there aren’t enough vehicles, which would make the endeavor profitable. Although this seems to be a stalemate, with only 1,197 CNG stations nationwide and 66 LNG stations, it doesn’t seem like it will remain a stalemate.

This chick and egg dilemma is being successfully handled by Clean Energy Fuels Corp (NASDAQ:CLNE) which is remedying this issue by developing America’s Natural Gas Highway — a network of stations strategically located along inter-state trucking routes. Currently, this comprises about 70 stations, of which Clean Energy saw a 25% increase in deliveries in 2012. In addition to this project, Clean Energy continues to form partnerships with state and city governments to assist with their growing, natural gas fleets.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!