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As easy as (A)123!

November 24th, 2008
By Justin Picard

With the Big three automakers essentially setting up camp in the hallowed halls of the U.S. congress, lobbying for $25 billion to simply continue operations through next year, it may be slightly delusional to examine a GM product slated to be sold in 2010. But, we here at Naked Stocks like to remain optimistic!

Chevrolet has been developing a hybrid that works in reverse the direction that most hybrids driving around the world’s roads today. The Volt will contain a battery, which when fully charged can propel the car for at least 40 miles, and a 4-cylinder gas engine which will kick in once the battery is exhausted. As an added bonus, the Volt’s battery will not require a recharging station like many concept electric cars. Instead, its battery can be charged with an ordinary 120V plug. Incredibly convenient and according to which expert you consult, it could drastically decrease the ordinary commuter’s carbon contribution if said commuter lives in an area where at least half of the power grid’s energy is generated with non-coal sources.

The Volt is a sizeable step forward towards a less petroleum-centric world. But, more importantly if GM survives to produce the Volt and it proves to be a commercial success, there will be an incentive to invest in better battery technology. This will be important because battery life and performance will ultimately decide whether or not electric cars are a feasible replacement for gasoline powered ones. Chevrolet could be on the verge of leading an energy revolution if their parent company was not on the precarious edge of the abyss and there wasn’t a stable of strong competitors being released during or prior to the Volt’s 2010 release date.

In March 2008 General Electric (NYSE:GE) announced that it was entering a partnership with both electric car developer Think and A123 investing over $20 million in A123 to work towards developing better, “long range” electric vehicles. Think is particularly interesting because they have not only produced a next generation long range electric vehicle, but it’s already being sold. Once upon a time, Ford owned the Norwegian company behind the Think car (under Ford, it was the “Th!nk city”), which they acquired to compete with GM’s EV1 and they leased a number of Th!nk cities in the United States, but in 2003 sold off the company and repossessed all of the electric cars, much to the dismay of the leasers, many of whom offered to buy the cars rather than lose them. These leasers were so distressed to lose their Th!nks because these cars had ranges reaching 52 miles without a charge and top speeds of 55 mph. But they did lose those cars, all of which are now being driven in Norway.

Think has reengineered their cars since then. The new models now sport ranges of about 106 miles without a charge and 65 mph, they are being sold in Norway now and the company plans to have them in U.S. driveways next year for an estimated cost of $18,000 to $20,000. If all goes according to Think’s plans, they’ll have their electric car in America a full year before the Volt goes on sale. In addition to General Electric, Think’s coporate investors include Proctor and Gamble, Qualcomm, MIT and Motorola.

Think is only one of many great companies that threaten the fledgling Volt’s future. These small, upstart, cutting-edge companies are gaining popular support along with considerable capital from the corporate world and they are re-envisioning personal transportation. And many of these companies, including GM along with Think, Venture Vehicles and Orion bus cars are all powered by A123 Systems’ batteries. A123 (NASDAQ:AONE) is a leading developer of Lithium ion batteries based out of Massachusetts and using nanotechnology originally developed at MIT they are creating some of the most advanced batteries in terms of capacity, longevity and weight. There are so many products, with so much potential and they are all powered by A123’s lithium ion batteries. And they are all going to be released in the next two years. You’re going to want to keep your eye on this one, it’s set to explode any day now.