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The Public Option, Good Karma, and the Mainstream

September 23rd, 2009 admin Comments off

If you’re keeping up with the goings-on in the alternative vehicle world these days, you might be as optimistic as I am.  As the economy starts to emerge from the sewer of the past year, indications are that momentum behind electrified vehicles is starting to increase – especially that of the financial variety.

a123-logoThe Public Option OK, so healthcare has taken center-stage for a number of weeks now, but that’s not what this is about.  I’m talking about the Initial Public Offering of shares of Li-ion battery maker A123 System’s common stock.  Without doing any rigorous financial analysis, I’m excited about the IPO.  A123 is a good company with an appropriate battery chemistry and some degree of demonstrating that it can mass produce battery cells at high volume.  Their acquisition of Hymotion gives them a test-bed and demonstration platform for using their battery technology in automotive applications.  They’ve received grants from both the federal and Michigan state governments.  Plus, they have a nice website.  The fact that the IPO was estimated to be priced at $8.75/share just a couple of weeks ago, and is now likely to be more in the $10 – $11.50 range, illustrates the excitement behind this IPO.  (This, in a time when folks are still reluctant to let go of their cash.)  We’ll know today or tomorrow what the price is, and it’ll be fun to watch what happens going forward.

fisker logoGood Karma It was announced this week that Fisker Automotive, maker of the Karma high-end PHEV, has joined the ranks of Ford, Nissan, and Tesla Motors and received federal loans from the DOE’s Advanced Technology Vehicle Manufacturing program, to the tune of $528-million (slightly more than the amount awarded to Tesla).  These funds will be used to complete the development of the Karma, as well as a second previously unknown model codenamed Project NINA, targeting the more mainstream lower-cost market.  Hopefully, private money will follow public, for Fisker and for the other companies receiving DOE grants and loans.

The Mainstream I hereby declare that electric vehicles have become mainstream!  The proof is that Stephen Colbert’s guest on the Colbert Report last night was Shai Agassi, the technologically brilliant and business savvy founder and CEO of Better Place, the company planning to deploy massive electric vehicle charging and battery-swap infrastructure.  Some might say Better Place’s task is more daunting than that of the automakers.  They have certainly received, and will continue to receive, a lot of attention from the industry.  But now Shai is visiting Stephen Colbert?!  What next – will Elon Musk appear on Letterman?!…