Skeptical on the market for electric cars, Janney Capital analyst John Roy today launched coverage of Ener1 (HEV) with a Sell rating, while starting A123 (AONE) at Neutral. Both companies make car batteries used in electric and hybrid vehicles.
Roy predicts that the electric vehicle battery stocks are headed for a pull back this year “as the timeline for electric vehicles lengthens.” In short, he thinks the merits of fully electrics cars are overblown, for four reasons:
- They pollute more than regular cars. Roy says that a National Academy of Sciences study finds that even by 2030, internal combustion engine cars will be 9% cleaner than full-battery electric vehicles, and 17% cleaner than plug-in hybrids....MORE
