This Day On The Street
Continue to site
ADVERTISEMENT
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

Tesla's Second Wind: California's Green Stickers Running Out



Many people simply don't want to worry about so-called "range-anxiety." They don't have the time or patience for thinking about where to charge during the day, or if they will make it on that unscheduled detour or other trip.

So what has been the solution? Buy a Chevrolet Volt, Ford or Toyota that gives you anywhere between 6 miles and 38 miles on wall-plug electric power, and then you run on gasoline after that. Problem fixed!

With these cars no longer getting the carpool sticker some time before mid-2014, the only game in town for longer-range cars is Tesla. The Model S comes in two versions; one rated by the EPA for 208 miles and the other rated at 265 miles.

Clearly not everyone can afford to buy a Tesla. The car costs tens of thousands more than the competition. But some can, and now they must.

GM, Ford and Toyota will lose sales as a result of these green stickers running out by mid-year. Some of these will go to Tesla.

BMW will enter the market with the i3 with range-extender in the second quarter as well, just in time for the green stickers to run out, it appears. Ouch. I've driven the i3 and it's in many ways the most exciting new car to hit the market, but the i3 version with range-extender looks like it will not get the benefit of the the relevant California carpool sticker situation.

Clearly, the 80- to 100-mile all-electric cars will continue to sell in whatever quantities they have already been selling -- such as the Nissan Leaf and the upcoming BMW i3 without range-extender.  But the cars that can compete with Tesla in range -- Chevrolet Volt, BMW i3 with range-extender, Toyota Prius Plug-In and the two relevant Ford models -- will have a big comparative problem starting next quarter.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
TSLA $218.42 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs