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Will This Lexus Be Tesla's First Competitor?

Tesla's Model S doesn't have any direct competitors yet, but that could be changing soon. Photo credit: Tesla Motors

Tesla Motors (NASDAQ: TSLA  ) has made quite an impression – on investors and the general public – with its hot all-electric Model S sedan. Now, the race is on to compete with Tesla's battery-powered hot rod – and the first entry could come from Toyota's (NYSE: TM  ) Lexus brand as soon as next year.

But there's a catch: Toyota's new ride won't have batteries. Instead, it'll be powered by a hydrogen fuel cell. In this video, contributor John Rosevear looks at Toyota's latest announcement – and at the prospects for fuel cells as a technology to rival Tesla's battery-powered electrics.

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Read/Post Comments (10) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 03, 2013, at 11:12 PM, Pixma25 wrote:

    One word: Hindenburg

  • Report this Comment On July 03, 2013, at 11:40 PM, Connelky wrote:

    Does anyone know where you can buy compressed hydrogen?

  • Report this Comment On July 04, 2013, at 12:12 AM, villalarios wrote:

    - Hydrogen? hydrogen??? Come on Doc! It's not like you can walk to pharmacy and buy compressed hydrogen. -

    Well I guess we steal it then :s

  • Report this Comment On July 04, 2013, at 1:18 AM, ADrolson wrote:

    when i see the name Tesla i think of the guy who invented electricity Nicolai Tesla. not a car. don't seem right using his name for a car.

  • Report this Comment On July 04, 2013, at 3:57 AM, hobomax wrote:

    And I thought the article was going to discuss an EV alternative, what a waste of time reading this garbage

  • Report this Comment On July 04, 2013, at 6:41 AM, haid1 wrote:

    3 or 4 years late to market and it suffers from lack of infrastructure to fuel up. Oh, and you can't charge up at home.

    Good luck with that.

  • Report this Comment On July 04, 2013, at 7:17 AM, TMFMarlowe wrote:

    Guys, machines that make H2 from water aren't all that expensive. Installing one at the local gas station won't be a big deal. There's your infrastructure.

    Since I recorded this video, GM and Honda have announced an alliance to bring mass-market fuel-cell cars out by 2020, and that will include investments in infrastructure. I'll have a follow-up piece this weekend that digs into that.

    The larger point here is that it's far from a done deal that battery-electrics are THE way forward, despite Tesla's early success.

    Thanks for watching.

    John Rosevear

  • Report this Comment On July 04, 2013, at 7:24 AM, TMFMarlowe wrote:

    I should say that water-splitters "won't be all that expensive" -- they're not there yet, but there is a viable process that's being commercialized. It's coming.

    John Rosevear

  • Report this Comment On July 04, 2013, at 1:21 PM, Marshgre wrote:

    Yes batteries are expensive. But have you looked at the cost of the platinum plates that go together to make a fuel cell?

  • Report this Comment On July 04, 2013, at 5:03 PM, djplong wrote:

    No, making hydrogen isn't all that expensive. A solar cell and water can do it. What IS expensive is compressing and storing that hydrogen. Ever see the tanks for those things? All that to produce electricity to drive the wheels. When you're starting with the SUN, and converting electrons, why go through the added bother of splitting water into hydrogen and oxygen and THEN pumping the hydrogen into a tank at high-pressure when you can just put it in a battery - a battery who's chemistry is improving every year just as it's costs is incrementally decreasing every year.

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