To fully appreciate the investment-worthiness of electric vehicles, one only has to look at how well shares of Tesla Motors Inc. (NASDAQ:TSLA) or Kandi Technologies Group Inc. (NASDAQ:KNDI) have done since the technology as well as the motivation to make EVs "work" has been in place. KNDI shares are up more than 200% since the end of 2007, while TSLA shares are up nearly 700% since their IPO in mid-2010. The big moves can't be chalked up to a little volatility either. Both Tesla Motors and Kandi Technologies have electric cars on the road, whereas they didn't before.
Yet, to say KNDI and TSLA have mainstreamed the 100% battery-operated vehicle would be a stretch. None of the EVs that Kandi Technologies makes (only available in China, by the way) reach highway speeds, and they're not capable of hauling much more than a driver and a passenger from point A to point B.... save the pickup truck versions, which are still woefully small. Tesla Motors has successfully introduced an electric vehicle more in line with the North American idea of a passenger vehicle - the Model S - but with a price tag starting at around $70,000, the admittedly-amazing vehicle is still out of reach for the vast majority of U.S. drivers.
There's one budding company that finds itself squarely in the middle of common sense and practically in terms of battery-operated vehicles, however, even if it's not a household name yet. It's Green Automotive Co. (OTCMKTS:GACR), and the company understands EVs have to be affordable as well as functional. It also understands that passenger cars aren't the only great opportunity for electric drive train technology. That's why GACR is poised to be a compelling long-term investment idea for those who truly believe electric vehicles are here to stay.
Truth be told, Green Automotive Company is the combination of three distinct divisions.... Liberty Electric Cars, Newport Coachworks, and GoinGreen. Though each division does something different, they're all built on the same battery-powered underpinnings.
Liberty Electric is primarily a service provider and maintenance company for existing EVs, though it also makes converted Range Rovers into the 100% electric E-Range. It's not just a mere parts and repair organization though. The EU asked Liberty to participate in the design and the construction of a prototype electric vehicle that should be completes this year as a precursor to mass production. It's more than a small accolade (not to mention opportunity) for Green Automotive Company.
Newport Coachworks is, well, was a traditional shuttle bus manufacturer, but a strategic decision was made several months ago to put the focus on the development and marketing of 100% electric shuttles. Smart decision. The backlog of these buses now stands near 500, with most of those orders coming even without the help of a prototype. GACR hasn't even begun to promote the bus either. Once it actually begins to be sold (kicking off with February's limo show in Las Vegas), orders should soar.
Finally, GoinGreen is the distributor of other electric vehicles, for manufacturers that don't have the marketing firepower or venue they need [there are more electric vehicles out there than you may be aware of]. One of the newest and most potent additions to the GoinGreen line of vehicles is the newly-introduced Mia, which began deliveries in December. It's a small passenger van, but a van all the same... the size of car most drivers are used to. And, with a starting price of around $27,000, it's not like GACR has priced itself out of the mainstream market. GoinGreen is also the exclusive distributor of the all-electric I'MOVING delivery truck in the United Kingdom.
The description of the company doesn't do the company, or the investment opportunity, justice, however. See, what most investors may not appreciate is that the Green Automotive Co. we see today isn't the same company we would have seen a year ago. Most of the big revenue/growth drivers have fallen into place within the past few months. For perspective on that idea, in Q3, revenue grew 1000%, and that's without Newport Coachworks operating at full capacity, and that's without any sales of the Mia, and that's without any sales of I'MOVING trucks, and that's without the benefit of being named an official service provider for the Ford Transit Connect electric delivery vans. Throw in the fact that the EU's prototype EV is apt to begin full-scale production later in 2014 or early 2015, and another revenue source is being developed.
Bottom line? GACR is a compelling opportunity not only because it's bringing a lot of EV aspects under one roof, but because it's doing so at the right time. The electric vehicle industry is just now finding itself at the crossroads of affordability and practicality, and Green Automotive Co. has reached that proverbial finish line first... before Tesla Motors or Kandi Technologies Group did. From here, consumers just need time to recognize what Green Automotive offers while the market needs time to recognize the potential that GACR has as a result of recent and near-future events. Neither should take very long, however.
For more on Green Automotive Co., visit the SCN research page here, or review the SCN research report here.
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