So far, consumers and investors have been ho-hum about the release of one electric car after another. An idea that seemed great in conceptualization has had tepid response since it came time to put it into practice. Electric cars simply lack the technology it will take for mass consumer adoption.
Namely, consumers are reticent about the fact that electric cars have to be charged. Not only are charging stations hard to find, cars have to be charged for a long amount of time for a drive of any distance. Still, savvy investors are keeping an eye on electric cars as the possible next big thing.
The news that New York Mayor Michael Bloomberg is trying out Nissan Leaf electric cars as taxis brought mixed reactions from investors. How could a taxi driver survive in a vehicle that requires a charge after 70 or so miles of driving — especially when a full charge takes hours to complete?
Nissan stocks rose slightly as Bloomberg’s staff made the announcement, but Nissan has long been a profitable automaker. One way Nissan is setting itself apart from the stellar competition is by dedicating itself to developing vehicles that utilize alternative forms of fuel.
Tesla Motors Inc (NASDAQ:TSLA) takes off
One company that seems to be making a serious dent in the electric car market is Tesla Motors Inc (NASDAQ:TSLA). The Tesla Model S has helped shares rise 50% this year, and the company recently announced it anticipates that it will soon achieve its first quarterly profit in the history of the company.
Tesla Motors Inc (NASDAQ:TSLA) recently made a bold move by offering a no down payment option with payments of $500 a month for its electric cars. Surprisingly, stock values dropped 7% after that announcement, but the company is still holding strong. In fact, CNN Money called it the “Apple of the auto business.” Not a bad attribute for a car company to have.
Still, its astronomical growth is being attributed to the fact that it is a start-up and therefore can’t be compared to older car companies. Plus, the company has a sleek luxury design and an electric build that is in demand from those who have money to spare.