[Editor's note: This is an opinion piece by Darryl Siry, of Tesla Motors. We asked him for his views about investment opportunities in the area of alternative fuel cars. Here's his response.]
There’s been a surge of interest in the field of alternative fuel vehicles in the past year — the public reception to the Tesla Roadster is indicative of a very large pent up demand for exciting alternatives to the petroleum powered cars we all drive. The sheer size of the market opportunity has drawn the attention of traditional automotive OEMs as well as a growing number of startup companies. Investors of all types are asking the same question – how can I participate in the creation of value in this space?
1) Has the company demonstrated a unique or superior technology advantage or the ability to deliver a uniquely valuable service? This question is fundamental. Does the company have IP that represents an advantage in the marketplace or that makes it attractive to a business partner or acquirer? Alternatively, does the company have unique expertise that could be marketed as a valuable service or a new business model that creates value by addressing some existing or emerging problem in the marketplace?
2) Is the company engaged in something that is of value to the incumbents? A successful company in this field is either going to create new value for end consumers or alternatively will be very good at something that is highly valued by the incumbent players. Ideally the company does both at the same time. As many of the traditional OEM companies pursue alternative fuel technologies, they are looking to outside partners to provide the expertise and supply the components that they have not developed internally. Using Tesla Motors as an example, Tesla is marketing highly desirable electric cars to consumers, but has also developed unique technology and expertise in EV drivetrain development and integration that is very valuable to potential partners.
3) Can the company scale to very high volumes? While there are many valuable niches in the automobile or EV market, marketing to mainstream segments requires scale. The company’s ability to scale, in manufacturing or distribution for example, is a key factor in sizing the ultimate opportunity.
4) Does the company have brand value in the emerging field? For the first time in about 100 years, new automotive brands are being created that carry important meaning for customers looking to make a statement that they are doing something different for positive change. These new brands have the opportunity to build equity with consumers that is unencumbered by past brand associations.
17 Comments
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Dennis Drake said:
We have all of the above ! Our HAFC Kit retro fits any vehicle and gives better mileage, more power , longer engine life and way less pollution . C.A.R.B. approval soon (testing now) And March & WIREC 2008 Show we release the Big Hammer P.I.C.C. 300 to 600 % increase , No pollution , Double your engine life. All global patent pending technologies.
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SQM said:
To invest in alternative fule car companies is still too early. Even Tesla itself is not clear which direction it will take after the roadster. But all these car companies will use Li-ion battery. So investing in the battery is one step closer to reality. However, it is still hard to prdict which battery company will find a break through techonolgy. To be another step closer to reality, we can invest in the Lithium itself. The largest Lithium dirivative producer in the word is SQM.
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Sam said:
Too early? At the risk of sounding like a shill for Honda (a company that I do hold stock in) why not simply invest in Honda? They’ve already produced a production-ready hydrogen powered full cell car, the FCX. Plus, they’ve devised a personal fueling solution that can also power one’s home. Seems like a low risk investment opportunity in a publicly traded, well-established brand.
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Jose G said:
So … how do I invest in Tesla Motors which is not publicly traded? What is the minimum investment? $10,000? $1 Million? $10 Million?
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Prince Tesla of Nigeria said:
Thank you for your interest. The minimum investment is indeed $10 Million. Please email me for further instructions on how to deposit it in my Nigerian bank account so I can mail you your shares in Tesla Motors…
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Bryan Dewhurst said:
I agree SQM is probably the best investment thus far. I have personally started building a position in ALTI and ZAAP.OB. The Al Yousuf fund out of Dubai has invested 40 million into ALTI which has probably the best Li-Ion battery next to Tesla doing just over 100 miles per charge and a contract with Pheonix Motors to produce batteries exclusively for their cars for the next 3 years. Al Yousuf also invested 5 million into ZAAP.OB who makes their own battery and full car, along with scooters and trucks. Al Yousuf owns his own auto company in the middle east and is doing a joint venture in China as well with another auto manufacturer there to further the li-ion car movement abroad. Those are the only 2 pure li-ion/car plays I could find thus far, and as far as the Chevy Volt is concerned, what a joke. 40 miles to the charge? GM has been make cars for nearly 90 years and they come up with 40 miles per charge? They are partnering with A123 batteries which suck, and they are private as well. Tesla has been in business for a few years and is doing 245, come on Detroit. Hope this helps.
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thomas said:
yes tesla was an austrian - croatian born inventor! I want to produce tesla cars in his birthland contact me.
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SoerenEs. Algreen-Ussing said:
Another concept of hydrogen/electric cars is the Famiglietta concept, allowing up to 9 seats and up to 14 full size suitcases in the same outside frame as a regular large Volvo stationcar,.
See :
http://www.mamut.dk/famiglietta
(’Bestil Produkter:’)
and :
http://www.sitecenter.dk/famiglietta
(drawings, pictures, links, calculations,.)
Sincerely,
Soeren eS. Algreen-Ussing ,.
Copenhagen, Denmark,.
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Dejan said:
More like Austro-Hungarian born. His father was Serbian priest.
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05tucdriver said:
batteries are not the long term solution either. Fuel cell cars! they make their own power, they would only need small batteries to get it going, once running it can not only move the car, proveide electric for the car, but a fuel cell can also power your entire house!
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05tucdriver said:
Forgot to mention only byproduct of fuel cell is water and Diamler has found a way to store hydrogen at 10,000psi which they have found to triple the range of their fuel cells to over 700miles per hydrogen fill up. Its elecetric, but has its own power plant! (look up GM Highwire…fully working fuel cell car from the general
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paul said:
it’s going to be very interesting to see how this all plays out. i’m guessing by 2015 that we will have some really neat cars on the road.
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kunta said:
better still invest in corn fields, if the dont become the hottest crop on the stock market, we can have fatter cows and neighbours
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AGSurfer said:
Tesla was born in Croatia. At that time it was still part of the Austro-Hungarian Empire. Nevertheless, that part of the world has been Croatia for a lot longer than California has been part of the United States, but if your great,great grandfather was born in California you wouldn’t say he was born in Spain. Otherwise why not say Tesla’s father was an Austrian priest.
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Peter McDougal said:
Nikola Tesla is not of Austrian blood, he’s Serbian,… read the Biographies. hahaha..Tesla was an Ethnic Serbian in the Austrian Empire. Just like an African American is still “black” but born in America, doesn’t make him white. Thus, Nikola Tesla is a person of color, that’s right ! Get used to it. Serbian. Look it up. Tesla’s Father was an Ethnic Serbian Priest In Austria. There’s a big difference.
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Tek Rx said:
Well look. If you’re wanting to find such a great investment opportutnity why go with established companies? True they will give good return, but if what you’re truly looking for is a step in the RIGHT direction for the WORLD… Well why not start with someone who doesn’t have millions? Someone with a great, revolutionary idea, that can’t seem to get started.
The thing is I am looking for a starter. I don’t care who you are but if you can help me (I will discuss with you the details personally once I can be sure my intellectual property is secure) I am willing to take almost any cut in the profits that come thereafter.
I am calling out everybody. Car companies, gas companies, rich guys with so much money you don’t know where to throw it away at to make you happiest. You will not be “giving” money away but simply hearing what I have to offer and IF it’s good enough for you well… then all you can really do from that point is watch your bank account grow as with the entire world.
This has been brought to your attention by…
Tek Rx. -
coolermaster said:
With extremely high gas prices straining consumers pockets in recent months, it is only natural for people to wonder where all the money they pay at the pump goes..Source:
FUEL SAVER MAGNETIC
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