Tesla Motors, Inc. Investors Shouldn't Fear Fuel Cell Technology

Hydrogen fuel cell technology is making groundbreaking progress. But Tesla investors shouldn't worry.

May 18, 2014 at 2:26PM

Hydrogen fuel cell technology is groundbreaking. It will undoubtedly have an impact on the future of automobiles. But does this mean that Tesla Motors (NASDAQ:TSLA) is doomed? Not at all. Fortunately, hydrogen fuel cell vehicles and fully electric vehicles are not mutually exclusive -- there's room for both technologies to happily coexist.

Sure, hydrogen fuel cell vehicles certainly pose a threat to Tesla by potentially stealing from the company's addressable market in the next 10 to 15 years. But Tesla is not priced to take over the entire vehicle market. In fact, even if it took 15 years for Tesla to achieve 4% of the global vehicle market, investors who buy the stock at today's stock price would likely still achieve meaningful returns.

And Tesla's vehicles are about far more than their green qualities. Electric vehicles, when they are built the Tesla way, are simply great vehicles. A handful of accolades and a 99 out of 100 rating at Consumer Reports by both the Consumer Reports judges and owners can attest to that. Not to mention the Model S was the top selling vehicle in North America among comparably priced cars in 2013. Going electric isn't just about going green -- Tesla simply makes cars consumers want to buy.

Battery technology isn't going anywhere -- and it will only get better. In the same way batteries have advantages in making typical consumer electronics -- like tablets and smartphones -- easy to use and consumer friendly, they can do the same thing for cars. And just like hydrogen fuel cell technology, battery technology will likely make unprecedented progress in the decades to come.

In the video below Daniel talks about why long-term Tesla investors can be fans of hydrogen fuel cell technology while still being confident in Tesla's future.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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