Plugged In!

Many people might identify the 2009 Tesla Roadster sports car as the first electric car.  Not even close.  To be absolutely correct, the first electric car hit the road in 1830.  Yes, nearly 200 years ago, a Scotsman put a motorized carriage on the road.  Its batteries were not chargeable so no one complained that it could not be a successful mode of transport.  In the modern age General Motors (GM:  NYSE) was first to the market in 1996 with its EV1. 

GM made its EV1 available only through a lease program and eventually killed off the EV1 model by recalling every car at the end of its lease.  Although many in the 1990s used the lack of charging capacity as an argument against electric cars, it was never an issue for the EV1.  In the early days of the modern electric cars, combustion-oriented leadership at GM simply lacked enthusiasm for EVs and engaged in behind-the-scene politics with California’s Electric Transportation Coalition (CARB). 

Some savvy EV1 lessees hid their cars and kept them as collector cars.  Beginning with these early electric car enthusiasts, consumers have had their way.   Today there are over thirty electric car vehicles available for commercial sale.  Many car makers have plans to make EVs the core of their product line.  For example, American Honda Motor Company has a goal of 100% zero-emissions electrified vehicles by 2040.  Interestingly, a partnership with General Motors will make it possible for American Honda to introduce a low-cost EV.  Ford Motor Company has a more ambitious goal of 2030 to electrify its entire vehicle portfolio.

Charging is no longer a significant issue.  There are an estimated 140,000 public electric vehicle chargers at 53,000 charging stations across the U.S.  This compares to 145,000 gas fueling stations around the country.   Clearly, there is much work to be done to develop electric charging capacity.  Still U.S. electric car owners can charge up at home and get topped off on a cross continental trip.

Companies with charging solutions and services present interesting investment opportunities for patient investors.  In the next post we look at the publicly traded stocks of four companies with major roles in the electric car charging scene.    

 

 

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.