Plug-in Vehicles

by Doug Young Bottom line: BYD’s EV sales are likely to see strong growth based on government-supported buying in China this year, but could slow sharply in 2017 if China’s economic slowdown accelerates. Chinese electric vehicle (EV) maker BYD (HKEx: 1211; Shenzhen: 002594; OTC:BYDDY) shot into the headlines in 2008 when investment guru Warren Buffett bought 10 percent of the company. But it has struggled to find a mass audience for its cars since then, at times raising doubts about its future. That seems to be changing recently, as a nascent surge in its home China market has...

Doug Young Chinese car makers are fueling a new global buying binge of clean-energy assets, with the latest word that Geely Automobile (HKEx: 175) is buying a British electric car startup. This is in addition to Geely announced a new joint venture to produce electric cars with Kandi Technologies (Nasdaq: KNDI).  Geely’s deal comes just weeks after China’s Wanxiang Group completed its second major acquisition of a clean energy firm in the US, hinting at a growing wave of global M&A by tech-hungry Chinese car makers. This flurry of deals also comes as China’s leading electric vehicle (EV)...

Doug Young  Speed bump photo via BigStock After a year of relative calm in which its shares have surged, electric vehicle (EV) aspirant BYD (OTC: BYDDF; HKEx: 1211; Shenzhen: 002594) is once embroiled in a couple of mini-scandals involving its labor practices and technology in California. While I doubt that either of these problems will have a long-term impact on the company, they do highlight the many speed bumps that BYD and other Chinese automakers will face as they move into the global marketplace. The risks are...

Tom Konrad CFA The Kandi KD501 Mini-EV to be leased in Hangzhou. Photo by Marc Chang. Ever since July, when I wrote about Kandi Technologies' (NASD:KNDI) deal to sell 20,000 mini-electric vehicles (EVs) to a leasing program in the Chinese city of Hangzhou, the company’s detractors have been harping on the fact that this deal was simply a “Letter of Intent” (LOI) and not legally binding.   This morning, Kandi put those concerns to rest, with a signed sales contract for 5,000 mini-EVs to be delivered in between now and the end...

John Petersen I usually write a quarterly recap to summarize what happened in the energy storage and vehicle electrification sectors, but Q2 was a tough enough period that I don't see much sense in dwelling on the bloodletting. So instead of focusing on the past, I'll offer a quick summary table with lots of red ink and turn my attention to Q3, which is shaping up as a time of bright opportunity for some companies and profound risk for others. I expect three companies in my tracking group to perform very well in Q3 –...

John Petersen Epic is the only word I can use to describe an evolving tragedy that killed tens of thousands of people, inflicted hundreds of billions in property damage, destroyed 3.5% of Japan's base-load power generating capacity in a heartbeat and will cause recurring aftershocks in the global electric power, transportation and energy storage sectors for decades. While I'd love to believe the worst is behind us, I fear the times of trouble have just begun. Since it's clear that Japan will have to turn inward and serve the urgent needs of its own population first, the...

guest post by Clean Energy Intel A debate has once again been raised with regard to the future of clean technology and in particular the electric car. Whilst many of the issues on which this debate is based are genuine, they in fact fail to get to the heart of the matter. It therefore seems worthwhile to address some of central issues directly. The Global Problem of Oil’s Monopoly in the Transport Sector At the heart of the matter is the simple fact that a number of threatening global issues cannot be dealt with...

Doug Young Bottom line: Beijing should take a more holistic approach to developing green cars in China, which should include education of owners and creation of owner communities in addition to financial incentives and infrastructure building. China made the latest new move to boost its sputtering electric vehicle (EV) program over the holiday, disclosing an ambitious plan to sharply accelerate installation of charging stations across the country. The plan was aimed at countering one of the biggest obstacles to EV development, namely concerns from potential owners about difficulties they might face recharging their vehicles. The new move...

Tom Konrad I asked Art Porcari for a paragraph about what Kandi Technologies' (KNDI) recent press release meant for the company to be included in this article. He managed to keep it to a page, but it was too much for an article about ten stocks.  I thought I'd share his thoughts here.   In its Q3, 2011 10Q filing Kandi (KNDI) stated: “On August 14, 2011, a team is formally formed in Hangzhou by Development Research Center of the State Council, Society of Automotive Engineers of China (SAEC), and Zhejiang University to...

by Debra Fiakas CFA The Tesla Model S, from the unveiling on 26-Mar-2009. (Photo credit: Wikimedia Commons)   The Wall Street Journal reported on Friday morning that Blackrock has cut its position in electric sports car innovator Tesla Motors (TSLA:  Nasdaq).  Blackrock is a widely known and respected fund manager.  I imagine more than just a few investors grabbed whatever device might be available at the time and punched in sell orders on the supposition that smart money always know best.  The really smart investors had already looked at...

Doug Young Bottom line: Trina’s new loan and BYD’s uncertain outlook for EV sales this year reflect continued reliance of new energy technology companies on state support, which could pressure them as government incentives get retired. Two new energy stories are in the headlines today, reflecting the progress but also the continued reliance on government support that this up-and-coming group of companies faces. That particular reality isn’t new, though some who were hoping the industries would become commercially independent more quickly may be disappointed. But more important, this reality could challenge many of the companies in the...

By Jeff Siegel Oh my God! Oh my God! Saudi Arabia cut oil prices and crude fell all the way to $75.84 today. Sell it, dump it, run for the hills! How far will it go? No one knows. But hold on to your asses, because things are going to get crazy! We're awash in oil, demand is waning, the Saudi plan to wipe out the U.S. shale market is underway. Gas prices will fall back to $2.00 a gallon, everyone will be happy, gas-guzzlers will make a comeback, and electric cars are...

John Petersen Industrial subsidies have been an important feature of the American economic landscape since the late 19th century for one simple reason – they work. After the steam locomotive proved its ability to quickly and cheaply move people and cargo long distances, the government launched a massive effort to span the country with steel rails and bring the benefits of a rapid, safe and reliable national transportation system to all its citizens. After electric lighting proved its merit, the rush was on to build a national infrastructure and bring the benefits to all. After the internal combustion...

John Petersen While I jumped the gun last week and published my third quarter outlook for the energy storage and vehicle electrification sectors early, it's worthwhile to take a look back and see how my tracking list of companies performed over the last quarter and examine the past to see what the tea leaves in the bottom of the cup portend for the coming quarter. So without further delay I'll present my price performance table for the second quarter that ended on Friday. Q-2 was a dreadful quarter for Maxwell Technologies (MXWL) and ZBB Energy...

Doug Young  US electric car maker Tesla Motors (Nasdaq: TSLA) has landed in the headlines with an escalating trademark dispute in China, casting a spotlight on Beijing’s ongoing efforts to bolster the country’s intellectual property (IP) protections. China has made great strides in its IP protection in the last 5 years, resulting in a healthier business environment where both domestic and foreign companies can feel more secure that their trademarks, copyrights and product designs won’t be illegally stolen and copied. But this latest case involving Tesla shows there is still more work to do, especially in trickier areas...

John Petersen One of the first lessons investment professionals learn is that if an investment proposal sounds too good to be true, the proposal is probably materially false and misleading. On November 15th, the Electrification Coalition released its Fleet Electrification Roadmap and once again proved the wisdom of the "Too Good To Be True Rule." I know that lobbyists are supposed to take a policy position and make the best case they can; but when their case is based on deliberate distortions, somebody has to point out the differences between current realities and bafflegab. In building the...