Written by Danny Guttridge
Continual reports of electric cars failing tests or breaking down shortly after being sold brings to question the readiness of the electric car revolution. Pair that with the high price tags to cover the cost of manufacturing, and the conclusion seems to lead more toward a negative response.
Edmunds.com's John O'Dell says, "It's going to be a slow slog. Maybe there's too much expectation of more and quicker success than might realistically be expected of a brand new technology."
According to Reuters, the Obama administration has been pushing to get 1 million battery-powered vehicles on the road by 2015. Research firm Lux Research estimates that the number will likely be lower than 200 thousand. These estimates and mishaps are not discouraging automakers, however, and many plan to launch electric vehicles, or EVs, to compete with the Nissan Leaf and Fisker Karma.
Klayman reports also that Henry Ford bought his wife at least two EVs in the early 1900s. The technology has existed for over a century, but analysts say that automakers have not succeeded in lowering production costs nor explaining and marketing the technology correctly. Even with rising gas prices, EVs are still having a difficult time taking off.
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Below is a list of automakers that produce or are designing and testing electric vehicles/hybrids. Do you think they can reduce the cost and market them well enough to get traction?
List sorted by market cap. (Click here to access free, interactive tools to analyze these ideas.)
1. Toyota Motor Corp. (NYSE:TM): Engages in the design, manufacture, assembly, and sale of passenger cars, minivans, and commercial vehicles. Market cap at $144.75B
2. Honda Motor Co., Ltd. (NYSE:HMC): Engages in the development, manufacture, and distribution of motorcycles, automobiles, and power products primarily in North America, Europe, and Asia. Market cap at $69.60B
3. Ford Motor Co. (NYSE:F): Develops, manufactures, distributes, and services vehicles and parts worldwide. Market cap at $47.78B
4. Nissan Motor Co., Ltd. (OTCBB:NSANY.PK): Engages in the manufacture and sale of automotive products, industrial machinery, and marine equipment primarily in Japan, North America, and Europe. Market cap at $42.92B
5. General Motors Company (NYSE:GM): Operates as a global automaker. Market cap at $39.60B
6. Tesla Motors, Inc. (Nasdaq:TSLA): Designs, develops, manufactures, and sells electric vehicles and advanced electric vehicle powertrain components. Market cap at $3.68B
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Disclosure: Kapitall's Danny Guttridge does not own any of the shares mentioned above. Data sourced from Finviz.