Tesla Motors Inc (TSLA): Electric “Gas” Station Build Out

Waste Management, Inc. (NYSE:WM) alone has a truck fleet of more than 2,000 natural gas vehicles, so footing the bill for “gas” stations makes sense. Using the abundant and currently cheap fuel not only saves the company money, but it also burnishes its image as an environmentally focused trash company. Around 15 of its stations are publicly accessible and it has agreements with third parties for fleet access to around 10 stations.

For green-minded investors, Waste Management, Inc. (NYSE:WM) is solidly profitable and has a yield around 3.4%. Although its natural gas push may not be the long-term future of the auto industry, it’s making money now, helping to clean up the world and saving money by pushing the envelope on clean fuels.

A broader gas play

Waste Management’s trucks, however, have local routes, so going vast distances isn’t an issue. That’s where Clean Energy Fuels Corp (NASDAQ:CLNE) has taken a broader path. It owned, operated, or supplied 348 natural gas stations in 32 states at the end of 2012. And its big push of late is to get America’s trucking fleet to switch to natural gas.

In support of this effort, Clean Energy Fuels Corp (NASDAQ:CLNE) is building fuel centers for long-haul trucks along the country’s interstate highway system. It has build around 70 stations so far. The company hasn’t made money in over five years because it has been spending to build out its natural gas support network. However, if natural gas catches on, the shares could have plenty of upside ahead.

The future or profits

With a much lower share price, a smaller and likely more receptive market, Clean Energy Fuels Corp (NASDAQ:CLNE) looks like it is backing a more promising alternate fuel source than Tesla Motors Inc (NASDAQ:TSLA) over the near term. While Tesla piques the imagination, its shares have risen too far too fast without a material market. And spending to build out a fuel station network will only make it harder to make money. Waste Management, meanwhile, is a conservative way to enter that alternate fuel space.

The article Electric “Gas” Station Build Out 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, Tesla Motors (NASDAQ:TSLA) , and Waste Management. The Motley Fool owns shares of Tesla Motors and Waste Management. 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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