Tesla Motors Inc Need Not Worry About Fuel Cell Cars

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Tesla Motors Inc Need Not Worry About Fuel Cell Cars
Blomst / Pixabay

Tesla Motors Inc (NASDAQ:TSLA) shares fell slightly, while Plug Power Inc (NASDAQ:PLUG) plunged more than 13% on Monday. Trip Chowdhry, an analyst at Global Equities Research issued a bullish report on Tesla, and cited weaknesses in fuel cell technology. Notably, Tesla CEO Elon Musk has said that fuel-cell cars will never be mainstream in the automobile industry. But major automakers such as Honda Motor Co Ltd (ADR) (NYSE:HMC) (TYO:7267), General Motors Company (NYSE:GM), Hyundai Motor Co (KRX:005380), and Toyota Motor Corp (ADR) (NYSE:TM) (TYO:7203) are investing heavily in fuel cell technology.

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Is fuel cell technology really a threat to Tesla?

General Motors Company (NYSE:GM) has joined hands with Honda Motor Co Ltd (ADR) (NYSE:HMC) (TYO:7267) to develop hydrogen fuel cell cars. The two companies have more than 1,200 fuel cell patents. Some argue that the fuel cell vehicles could pose threat to Tesla Motors Inc (NASDAQ:TSLA), which entirely focuses on electric vehicles. However, Trip Chowdhry’s report suggests that the Palo Alto-based company need not worry about hydrogen-fueled vehicles.

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Global Equities Research said Monday that big automakers are completely clueless about the green energy vehicles. For a startup, success depends on focusing on a few things and getting them right. Chowdhry said creating ecosystems is critical to Tesla Motors Inc (NASDAQ:TSLA). But why Elon Musk need not worry about hydrogen-powered cars?

Tesla has many advantages over hydrogen-powered cars

Trip Chowdhry says that fuel cell cars are a complete failure. To use hydrogen gas in cars, it has to be compressed to 5000 lbs pressure to fit in the cylinder. Compressing the hydrogen gas requires energy. A standard hydrogen cylinder to power a fuel cell car costs about $40, and has a range of 360 miles. Fuel cell cars lack in power density. So, a typical hydrogen-powered car can go from 0-60 mph in 11 seconds. In contrast, Tesla Motors Inc (NASDAQ:TSLA)’s Model S goes from 0-60 in just 5.4 seconds. These factors give Tesla a clear advantage over fuel cell cars. 

Tesla Motors Inc (NASDAQ:TSLA) stock inched up 0.79% to $200.08 in pre-market trading Tuesday.

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8 COMMENTS

  1. How much has the federal govt given Elon Musk a Britain lad? BILLIONS OF OUR TAX MONEY THE USA CITIZEN.
    So put USA citizens to work not just his famiy and brother.

  2. Fuel cells one day could go mainstream if they run on methane and other hydrocarbons. EBAY is using some to power their headquarters. Hydrogen is a bit impractical, unless they can find a cheap, clean way to make it. Being able to charge up at home is awesome.

  3. This article shows that hydrogen is cheaper per mile than petrol/gas, but more expensive than battery stored electricity. On the other hand it also shows that hydrogen can support 360 miles between fill ups, whereas battery powered cars are struggling to deliver much beyond 100 miles between (very slow) recharges. So there are advantages to both technologies.
    In terms of energy density, I would think could be easily sorted by the use of a small charge buffer (battery), which can be continually loaded with power from the fuel cell, and then used to provide acceleration when needed.
    Fuel cell cars are just getting on the road, the technology is younger, but I wouldn’t write them off just yet..

  4. Tesla Motors Inc is not worried about fuel cell car just concerned that the government and industry will spend a lot of money on this hydrogen endeavor which will never happen because it is so impractical.

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