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.
Nissan Leaf
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.
Charging stations
Charging stations are key to the success of electric cars. Drivers need the comfort of being able to charge a vehicle quickly, with that charge powering hundreds of road miles.
The future of electric cars, it would appear, lies with those charging stations. At the moment, many of those stations sit idle much of the time, but companies like NRG Energy Inc (NYSE:NRG) are operating on an if you build it, they will come mentality. NRG’s eVgo network charges commercial and residential services a fee to install its stations.
Thanks to a large number of workplaces that are installing charging stations as part of green initiatives, NRG Energy Inc (NYSE:NRG)’s 2012 cash flow was $1.15 billion and its cash balance was $2.1 billion. While the eVgo stations are only one part of NRG’s operations, the company’s forward-thinking environmental consciousness is what draws investors to the company.
As investors keep a close eye on electric cars, it’s hard to know if technology will evolve to the point where electric cars will finally replace gasoline-fueled cars on our streets. The automotive field is certainly changing, but it’s hard to say for sure that electric cars are the direction in which the field is definitely going.
The article Can New York Taxis Jump Start the Electric Car Market? originally appeared on Fool.com.
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