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.

Fool contributor John Rosevear owns shares of Ford and General Motors. The Motley Fool recommends Ford, General Motors, and Tesla Motors. The Motley Fool owns shares of Ford and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.