Electric vehicles not as easy as A123

November 15, 2010: 3:00 AM ET

The hot battery maker has a balance sheet problem -- lots of inventory of expensive EV batteries. It looks like the adoption curve for electric vehicles is flatter than anyone thought.

Battery maker A123 was supposed to rev up the electric vehicle revolution. When the company went public in September 2009, Wall Street loved it. But recently, A123 (AONE) has had a hard time pleasing the Street, missing earnings estimates even though it's producing a good product on schedule. Why?

Basically, A123 was ready for customers that couldn't ramp up production of electric cars when they predicted. This meant that A123 couldn't sell the number of batteries they'd hoped in the time frame that they expected to sell them.

"They need to wait for the customers to have their factories up and running before they're ready to sell batteries to customers," says Ben Schuman, a senior research analyst for Pacific Crest Securities who specializes in energy management technologies. More

  • Broadband is taking over broadcast

    Network advances, next-generation devices, and regulatory pressures are putting pressure on broadcast.

    By Daniel Hays, Director, PRTM

    On-demand video is starting to out-compete broadcast, and it looks like that trend is going to keep going.  The recent federal appeals court ruling against the FCC's net neutrality assertions will probably support the growth of on-demand video. Various forces are converging to open the floodgates for broadband service providers and content owners to deliver MORE

    Apr 29, 2010 2:42 PM ET
  • Racing towards cars

    China, oil prices and the environment are pushing electric cars to the tipping point

    By Oliver Hazimeh, Director, PRTM

    The recall of Toyota's Prius has some observers questioning the prospects for the entire electric vehicle marketplace.  They shouldn't:  The fundamental forces for electrifying our cars and infrastructure are still in place.

    While Toyota (TM) and Honda (HMC) have found success with traditional hybrid electric vehicles (HEVs) that are powered by an internal combustion MORE

    Apr 7, 2010 12:15 PM ET
Current Issue
  • Give the gift of Fortune
  • Get the Fortune app
  • Subscribe
Powered by VIP.