Tesla Motors Inc (TSLA): The Resurgence, And Death, Of The Electric Car

Tesla Motors Inc (NASDAQ:TSLA) now has a valuation of $20 billion — almost half of General Motors’ market cap.

Tesla Model S. Source: Tesla.

Though Tesla Motors Inc (NASDAQ:TSLA) is projected to sell 21,000 Model S vehicles this year, it’s just a fraction compared with Ford Motor Company (NYSE:F)‘s sales of 1.5 million in the U.S. already this year. But the vehicle sales comparisons aren’t completely fair — with Tesla Motors Inc (NASDAQ:TSLA) being a much smaller and newer company — as well as selling just one vehicle in its lineup right now.

But Tesla Motors Inc (NASDAQ:TSLA)’s not the only company pushing the electric car back into relevance. Last month Nissan Motor Co., Ltd. (ADR) (OTCMKTS:NSANY) sold nearly 1,900 of its electric Leafs — 372% more than it did in July of last year — which brings the total to 11,703 Leafs sold so far this year. Nissan Motor Co., Ltd. (ADR) (OTCMKTS:NSANY) says the car is the best selling EV in history.

Nissan Lead NYC Taxi. Source: NYC Taxi and Limousine Commission .

Just as with the beginning of the electric vehicle back in the early 1900s, the Leaf is currently being used as a taxicab in New York City as part of a one-year pilot program. The Leaf taxicabs have have the same shifts as gasoline-powered cabs and take advantage of quick charging stations in the city to replenish batteries to 80% in just 30 minutes. Hopefully these electric-powered taxicabs will have a longer history than earlier EV cabs.

It’s important to point out that in addition to the companies we’ve mentioned, automotive manufacturers such as Honda, SMART, BMW, Ford Motor Company (NYSE:F), Toyota, Mitsubishi, Fiat, and others either have EVs on the road now, or have them in the works. While the automotive industry has taken a while to turn the tide — at lease partly — back to electric vehicles, it still has a long way to go. As the EV industry grows, consumers — and investors — will need to see battery costs decline and consumer demand increase. Both of these factors are paramount in keeping electric vehicles on the road and avoiding EVs’ troubled past — but for now it seems things are moving in the right direction.

The article Tesla Motors Is Trying to Prove History Doesn’t Repeat originally appeared on Fool.com is written by Chris Neiger.

Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Apple, Facebook, Ford, General Motors, Google, and Tesla Motors and owns shares of Amazon.com, Apple, Facebook, Ford, Google, and Tesla Motors.

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