This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

GM Volt Sales: Yellow Light for Electric Car Growth Stories

Stocks in this article: GM PPO AONE NSANY

NEW YORK ( TheStreet) -- The latest sales figures from the electric car market suggest that the outlook remains mixed for companies whose success hinges on broader adoption of models like the Chevy Volt and Nissan Leaf.

The Volt isn't a make-or-break issue for GM (GM) -- in fact, GM's overall auto sales surprised to the upside in February.

For lithium ion battery companies, such as A123 Systems (AONE) -- hoping to cash in on future GM electric car models -- and related battery technology, such as lithium ion separator company Polypore (PPO), broader adoption of electric cars is the core growth narrative.

Volt sales rebound, but consumer demand for electric cars still seems tepid.

In February, GM sold 1,023 Chevy Volts and Nissan sold 478 Leafs in North America, compared with sales of 603 Volts and 676 Leafs in January. Year over year, the numbers for both electric cars look good, up from 281 Volts and 67 Leafs in February 2011. The pickup month over month in Volt sales from 603 in January to 1,203 also suggests that the Volt is rebounding from the battery fire issue with which 2012 began.

Volt sales are still well below the December 2011 record level, though, and Nissan Leaf sales continue to trend down in the North America, on a decline for over six months, and February being the worst sales month for the Leaf since last April.

Polypore has become a battleground stock linked to the bullish and bearish divide on electric car adoption versus hype. A123 has recently been focusing on sales of lithium ion batteries to the energy storage market as part of making the case that it's not beholden to consumer demand for electric cars.

Stifel Nicolaus said on Thursday that if production and demand do not come into better balance, companies reliant on increased adoption of electric cars like Polypore may be pressured by investors.

Cumulative sales of the Volt have been 1,626 vehicles this year, implying total sales of 9,756 Volts in 2012, a 27% year-over-year increase. If this sales data is to representative of 2012 demand, it would be a disappointment from GM, LG Chem which makes the Volt battery and Polypore, Stifel wrote.

"Momentum needs to continue to build moving forward to drive meaningful production increases y/y for the Chevy Volt," Stifel wrote.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs