Shares of A123
Before today's hit, A123's stock was already trading 87% below its $13.50 IPO price of three years ago. Consumers have been slow to take to electric cars. To make matters worse, A123 hasn't been able to find its way into the few electric cars that are gaining any kind of traction.
When General Motors
When some of Tesla's
Sidestepping some of the niche's more prominent speed bumps may seem to be good news on the surface, but A123's public exposure has been limited, given slow rollout of customers, including Fisker Automotive and VIA Motors. A deal with GM to provide battery packs for the all-electric Chevy Spark is promising, but that car won't hit the market until next year.
This would seem to be a great time for electric cars. Gas prices continue to inch higher, and federal tax rebates are being dangled before drivers to help offset some of the higher price tags associated with electric vehicles.
However, the post-subsidized price of lithium ion batteries remains high. The publicized failures also aren't helping this promising space regain its juice.
Hit the road
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Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.