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

Could new Formula E races help galvanize electric car stocks?

By Ben Levine for Kapitall.

Late in 2012 the Fédération Internationale de l’Automobile (FIA), the group that brought us Formula One racing, announced a new class of auto racing: the new Formula E Championship, which will feature only electrically powered racing cars. 

The races will begin in September and, like Formula One, the new championship will feature races in cities all around the world.

Confirmed race locations include Beijing (putting some relics of the 2008 Olympic Games to some use, such as the neglected  Bird’s Nest stadium), Buenos Aires, Miami, Los Angeles, Berlin and London.

And the Championship is still adding locations—Formula E is in talks with the city of New York about the possibility of a race through The Big Apple.  

In 2013 the Formula One event had total television viewership of 450 million people for the entire tour. That isn't as good as the 700 million people who watched the 2012 World Cup finale, but it's still 40 times larger than the TV audience for this year's Olympic Closing Ceremony. 

Both benchmarks are probably a ways off for Formula E. Its chief executive, Alejandro Agag, forecast a total viewership of just over 205 million people in its first year. While this would constitute less than half of the viewership of Formula One, which began in 1950, it’s only reasonable that the new electric-only race would need some time to gain popularity.

This kind of viewership could provide advertising opportunities for car companies seeking to promote electric or hybrid vehicles, like Nissan and Tesla (TSLA) who dominated electric car market share for the first half of 2013 (at 45.7% and 42%, respectively). 

Toyota (TM) could also potentially see a boost, considering their similar dominance of the  hybrid vehicles, with a 68.05% share of the market.

Though these are the biggest players, Ford (F) trailed behind in both markets, making up 4.1% of the first half of 2013’s electric car market share and 15.65% of April’s hybrid car market share. 

Do you think the races could help out companies that produce electricity-powered cars and their parts? Take a look at the list below to decide for yourself.

1 of 2

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

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