Will the U.S. Subsidize Your Next Golf Cart Purchase?

• By the tickerspy.com Staff
• On 10:23 am EDT, Friday October 16, 2009

U.S. taxpayers will be subsidizing the purchase of a glorified golf-cart by about 35%.

China-based recreational vehicle maker Kandi Technologies (NASDAQ: KNDI - News) announced this morning that its COCO received approval from the U.S. Department of The Treasury, qualifying purchasers to receive a $4,435 tax credit. With an MSRP of $12,995, the credit will bring the purchase price down to $8,560, just under a -35% discount.

The two-seater COCO can go up to 60 miles on a six-hour charge, and has a top speed of 25 miles per hour. Though the COCO's top speed would seem to limit it ti golf cart paths, the vehicle's size, pricing, and overall look put it in direct competition with Daimler's (NYSE: DAI - News) Smart car division.

While the COCO's size and power limit its practical value, the components of the Energy Storage and Battery Technology Stocks Index are hard at work developing new technologies that could change the stigma of electric transportation.

Warren Buffett saw potential in another Chinese electric carmaker, BYD (OTC: BYDDF - News). His initial investment in October 2008 is now worth ten figures, and BYD's e6 is set to debut in the U.S. in 2010. It has a price tag upwards of $40,000, but unlike the COCO, the e6 is capable of speeds up to 100 miles per hour and has a range of 249 miles, according to the company website.

San Diego, California-based energy storage play Maxwell Technologies (NASDAQ: MXWL - News) is the Index's only component to outperform BYD over the last week, with a 17% run. Maxwell's products have applications ranging from automobiles to industrial telecommunications.

General Motors is among the companies working with Watertown, Massachusetts-based A123 Systems (NASDAQ: AONE - News). The lithium-ion battery company is one of the newest components of the 2009 IPOs Index after going public in September.

Other popular energy storage and battery plays include Johnson Controls (NYSE: JCI - News), Altair Nanotechnologies (NASDAQ: ALTI - News), Advanced Battery Technologies (NASDAQ: ABAT - News), and Exide Technologies (NASDAQ: XIDE - News).

As major automakers like Ford (NYSE: F - News), Honda (NYSE: HMC - News), and Toyota (NYSE: TM - News) all push towards the release of completely electric vehicles, investors should keep a close eye on the Energy Storage and Battery Technology Stocks Index, as the performance, efficiency, and pricing of batteries will likely have a significant impact on the future of electric transportation.

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