A Big Step Forward For Cars… And How You Can Profit

| July 7, 2010 | 0 Comments

The U.S. dependence on foreign oil is serious business.  The numbers show America is hopelessly addicted to oil.  So much so, that we risk our national security by continuing down this path of reliance on crude.

We went over some important figures in a recent article.  And they all point to a frightening conclusion…

Our dependence on foreign oil is slowly bleeding the U.S. economy dry.

The numbers are staggering.  In 2008, the U.S. spent over $450 billion for foreign oil.  And each year the number continues to grow.  I don’t know about you, but I’d rather keep my money here in America.

So what can we do?  (And more importantly, how can we profit?)

First of all, we need to dramatically increase the efficiency of daily commuting.  Transportation eats up over 60% of the oil we use every year just getting from point A to point B.

There has to be a better way… and there is.

A few companies are leading the way towards making the daily commute gas free.  Utilizing electricity and battery power, new technology will allow us to get around with basically zero gas.

Just think how nice it would be to bypass the gas station with a smile!  No $3 (or $8) gas for you.

One of the companies leading the trend is Nissan Motors (NSANY)…

Nissan is coming out with the Leaf in late 2010.  The Leaf has an all-electric drive train and will have a range of around 100 miles per charge.  According to Nissan, this translates into an amazing 367 MPG!

You charge the Leaf at home along with charging stations around town.  These “E-charging stations” are springing up in major cities across the U.S.  But more on that in a minute…

General Motors is also coming out with an electric car… the Chevy Volt.

If your daily trip is less than 40 miles, you can run all electric all the time.  If your commute is a bit further, the Volt has a back-up generator to recharge the batteries when they get low.  This extends the range on the Volt to over 300 miles.

GM says this system translates into around 230 MPG…

Obviously this is a huge step up in fuel economy for the daily commute.  A mass rollout of electric vehicles over the next five years will put a big dent in our dependence on foreign oil.

So how can we grab profits on the rollout of electric vehicles?

Look no further than Ecotality (ECTY)…

ECTY makes “E-charging stations” for electric cars like the Nissan Leaf.  When electric cars go mainstream, people are going to need to re-charge their batteries.

The infrastructure for recharging isn’t in place yet.  In order for electric cars to really take off, there must be easy access to charging stations.

First of all, the stations need to be in garages where the car is parked overnight.  People can plug the car in when they get home from work.  By the next morning, the car’s fully charged.

But charging stations are also needed in other places around town…

In order for electric cars to be practical, you have to be able to recharge them easily.  So we need charging stations in front of stores, along the freeway, and hundreds of other places around the city.

And ECTY is getting in on the ground floor…

According to ECTY, their charge infrastructure is being deployed in a number of major markets in 2010.  Markets like Phoenix, L.A., San Diego, Portland, and Nashville, just to name a few.

Not only are cities getting ready… but entire states are as well.

The state of Washington is creating a network of charging stations all along Interstate 5.  Interstate 5 runs across the state for a total of 250 miles.  Using ECTY charging stations, travelers can charge up at multiple points along the interstate.

Washington State estimates there will be over 300,000 electric cars on their roads in the next 10 years.

Soon travelers will be able to get around on electric power…

The potential for the electric vehicle is huge.  Companies like ECTY could be a jackpot for early investors.  Take a closer look at ECTY for your portfolio.  I know I am…

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Category: Stocks

About the Author ()

Justin Bennett is the editor of Commodity ETF Alert, an investment advisory focused on profiting from the ebb and flow of important commodities via ETFs. The commodity veteran and options specialist is also a regular contributor to the Dynamic Wealth Report. Every week, Justin shares his thoughts with our readers on a variety of commodity-related topics. Justin is also a frequent contributor to Commodity Trading Research’s free daily e-letter. And he’s the editor of another highly successful and popular investment advisory, the Options Profit Pipeline.

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