Plug-in Vehicles

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 During the fourteen years that I've lived in Switzerland, the Germans have been the world's staunchest supporters of green power and alternative energy. Their aggressive development of wind power was breathtaking, as was their warm embrace of photovoltaic power. Over the last few weeks, however, there has been an ominous change in the mainstream German media's tone as the political class finally comes to grips with the unpleasant reality that rooftop solar panels are worthless on short, grey winter days and "For weeks now, the 1.1 million solar power systems in Germany have generated almost no...

by Sean Kidney Tesla issues $600m, 5yr EV convertible bond Tesla Motors’ inaugural bond issue has been, as you’d expect, electrifying (just had to say that). The US electric sports car manufacturer has just issued a 5 year, $600m convertible bond in a fundraising program which has seen it raise approximately $1bn through shares and convertible bonds. Coupon is 1.5-2%; conversion premium is 35%; bookrunners were JPMorgan, Goldman Sachs, Morgan Stanley. Tesla had planned to raise $450m through convertible bonds, but this was raised to $600m after strong demand from investors. That demand allowed Tesla to drop what was going to be a 2-2.5% coupon down to...

Doug Young The BYD gas-powered S6 SUV debuted in Chile last month. Image Credit BYD. Struggling electric vehicle (EV) maker BYD (HKEx: 1211; Shenzhen: 002594, OTC:BYDDF) got a major boost last week when Beijing announced an innovative new plan to stimulate an anemic industry whose sales have failed to take off despite generous government support. The plan this time around looks much smarter than previous ones by focusing on big customers. Unlike previous campaigns that focused mostly on consumers, this new campaign takes aim at Chinese cities and mass buyers...

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...

John Petersen The first thing every securities lawyer learns is that technology is a two edged sword. On the leading edge, developers of cheap innovations that ramp rapidly over a few years build thriving businesses that deliver market beating returns for investors. On the bleeding edge, developers of expensive technologies that can't be implemented at relevant scale for years morph into financial black holes that suck the lifeblood out of portfolios and teach a new generation of investors about an insidious market phenomenon the Gartner Group refers to as the hype cycle. The second thing...

Jim Lane “Electric power is cheap”, and “cellulosic biofuel costs less than $1.00 per gallon”. The Tesla Model S, from the unveiling on 26-Mar-2009. (Photo credit: Wikimedia Commons) So why isn’t everyone buying a Chevy Volt? And why can you get lower interest rates on your Visa Card than next-gen biofuel developers face? It’s the old capex-opex (Capital Expense vs. Operating Expense) fallacy. Earlier this week, a new study from researchers at UC Santa Barbara determined photovoltaics to be much more efficient than biomass at turning sunlight into energy to...

Doug Young Tesla cruises into China I have to give my congratulations to new energy car maker Tesla (Nasdaq: TSLA) for creating the kind of buzz and excitement this week that only names like Apple (Nasdaq: AAPL) and smartphone sensation Xiaomi have typically been able to muster. In the last 2 days, the company and its charismatic founder Elon Musk were all over the Chinese headlines as Tesla delivered its first electric vehicles (EVs) in China on the sidelines of the nation’s biggest annual auto show happening this week in...

By Jeff Siegel On the 30th of April, everything is going to change... Why? Because Elon Musk says so. OK, maybe he didn't actually say that, but he did recently reveal that on April 30th, he'll be making a major announcement about a new product that is NOT an electric car. Most analysts have suggested that the announcement is regarding the release of what could ultimately be a game-changer for the solar industry  a game-changer that, if it delivers the way the Tesla Model S has delivered on performance, design, and efficiency, could catapult Tesla (NASD:TSLA) into one of...

by Debra Fiakas CFA New Jersey-based NRG Energy, Inc. (NRG:  NYSE)  NRG serves about 2.8 million customers in the northeastern U.S. with electricity generated from a mix of conventional and renewable power sources  - 95 fossil fuel and nuclear power plants, 14 utility-scale solar power plants, and 35 wind farms.  It has been good business for NRG, raking in $16.2 billion in total sales in the twelve months ending March 2015.  NRG converted $1.4 billion of those sales to operating cash.  That helps support a dividend payout policy that will put $0.58 per share in holders’ pockets next...

by Debra Fiakas CFA The chief executive officer of Car Charging Group (CCGI:  OTC/PK), Michael Farkas, made an appearance at the Marcum Microcap Investment Conference in New York this week.  Farkas used the forum to brag a bit about this company’s practical accomplishments in providing electric vehicle charging stations and services to residential and commercial customers.  Farkas is particularly proud of snapping up the EV charging network of bankrupt ECOtality (ECTYQ:  OTC/PK) at a price he claims was about two pennies on a dollar of ECOtality’s government-funded assets.   Only thinly disguised was his scorn for government investment to...

Ed. Note: This article was first published as an instablog by 'Illuminati Investments' on Seeking Alpha, and was intended as an April Fool's joke post.  I found it very funny.  Kandi advocates may not. Wouldn't it be nice to invest in the best business in the world? Now, I don't want to hyperbolize, but I believe I have uncovered the greatest investment opportunity in the history of the universe. This perfect company goes by the sweet name of Kandi Technologies (KNDI). Now, I know what you're probably thinking: "Mmm, candy..." If this is the case, you're either...

John Petersen In his 2006 State of the Union Address, President George W. Bush said: "Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology." What a crock of balderdash! If you compare US fuel prices with those in other industrialized countries, gasoline is a screaming bargain and the same can be said for electricity. It's not the energy we use that's a problem. The problem is the...

Tom Konrad CFA This article was first published on the author's Forbes.com blog, Green Stocks on May 31st as "Kandi Technologies: Weighing The Evidence." I have since added a short update to the end of the article. Last year, I brought Chinese off-road vehicle and electric vehicle (EV) manufacturer Kandi Technologies (NASD:KNDI) to readers’ attention.  I like Kandi because the company was already profitable and trades for a tiny fraction of what a US-based EV maker would. The Strategy I also like Kandi’s electric vehicle strategy, which focuses on inexpensive commuter vehicles...

Doug Young Billionaire investor Warren Buffett has remained faithful to Chinese car maker BYD (HKEx: 1211; Shenzhen: 002594; OTC:BYDDF), refusing to change his 10 percent holdings in the company despite a rapid tumble as its bet on electric vehicles (EVs) fails to take off. But soon the man known as the Oracle of Omaha may have no choice but to reduce his stake, since BYD has just announced a plan to issue more shares to raise desperately needed cash. Of course Buffett may choose to buy some of those new shares to maintain his stake at 10...

John Petersen Last week I stumbled across a link that led to a 2010 report from the National Research Council titled "Hidden Costs of Energy, Unpriced Consequences of Energy Production and Use." This free 506-page book takes a life-cycle approach – from fuel extraction to energy production, distribution, and use to disposal of waste products – and attempts to quantify the health, climate and other unpriced damages that arise from the use of various energy sources for electricity, transportation and heat. After studying the NRC's discussion of the unpriced health effects, other nonclimate damages and greenhouse gas...