Transportation and Automotive Sector Ideas

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Tesla, Ecotality -- >>> New Tesla, GM electric cars juice prospects for microcap Ecotality




November 30, 2012


http://blogs.marketwatch.com/thetell/2012/11/30/new-tesla-gm-electric-cars-juice-prospects-for-microcap-ecotality/




Sure the roll-out of electric vehicles in the U.S. has hit some rough spots, with General Motors GM-1.02% falling short of sales goals for the Chevrolet Volt.

Antenna Group Blink charging station by Ecotality.
But the emerging car segment continues to gain momentum.

Tesla’s Motors Inc. TSLA+1.99% won the coveted Motor Trend Car of the Year for its new Model S sedan, as the Palo Alto, Calif., company gains traction as one of the few automotive start-ups in recent American history.

Wise from cost competition from the Nissan Leaf all-electric car, GM has now set plans to roll out the Chevrolet Spark, priced below $25,000 including tax credits.

And several new models are coming out from the likes of Honda, Ford and Toyota.

All this adds up to better prospects for San Francisco-based Ecotality, which makes car charging stations under the Blink brand name.

The company saw its third-quarter sales rise 52% to $14.4 million as it works with the Department of Energy to deploy charging stations at Kohl’s, McDonald’s, and other parking spots around the country.

In an interview, Ecotality CEO Ravi Brar said people getting their cars charged for free at public Blink stations in participating parking lots tend to shop for a longer time. Retailers like that.

While Ecotality is not profitable yet, Brar said it could start to turn the corner next year as more electric cars hit American roads.

Brar added that gasoline prices — on track to set an annual average record in 2012 — will continue to go up, making electric cars more appealing.

“There are always going to be bumps in the road when there’s a sea change in technology,” Brar said. “I don’t think anything is going to happen in straight line. But right now we’re seeing a lot of positives.”


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