Before I get to the topic I want to discuss today, a bit about my week. I have been in California most of this week, combining several business meetings with a few days in Sonoma for the NAFEM Annual Meeting & Management Workshop. I spent the first few days beautiful San Francisco. I have always enjoyed this city. There is so much energy. Of course, I love all of the technology that was developed in this part of the country. It is an amazing place (at least to visit). My business partner and I were driving between meetings and pulled up along side a beautiful Teslia. Well, actually it blew by us, but that's expected. We were able to catch and I snapped the picture below with my iPhone. I wish I would have been able to stop and get a good picture, but that was not going to occur without risking my life and likely creating a major traffic accident.
Seeing this cool car was timely. Just today I read an article in Forbes that warned of a developing glut of electric car battery capacity. Partially created by the $2 billion in stimulus money that promoted manufacturing of car batteries, the author wrote that by "2015 2015 the new factories will have the global capacity to produce 36 million kilowatt-hours of battery capacity, enough to supply 15 million hybrid vehicles, or 1.5 million fully electric cars." (My reference to the stimulus is NOT a political statement .. just referencing one source of a lot of cash. When the government puts money into an industry, we often get bubbles).
I highly doubt there will be enough demand to fill these factories, at least by 2015. The article quoted one executive, from Enr1 (NASDAQ: HEV), that said manufactures are no where close to being able to meet demand. I am not going to share more from the article .. go read it. I believe there will be much less demand than capacity. Time will tell. I actually have high hopes for electric cars, I just believe tehcnology needs to advance before it becomes this ubiquitous. We will see.