Thursday, June 10, 2010

Why Tesla, Fisker, and Solyndra need to work...

The green in industry is going through an interesting times the big boys are having issues getting their products to market. Vinod Khosla postulated recently that the first green IPO's are key because they will be a bellweather for the next green companies to IPO. I've thought lately along the same lines as my job search has to come to a head as my focus on the the green big boys. When I say the big boys I'm referring to the following companies:

Better Place ($750), Bloom Energy ($400), Boston Power ($136), Brightsource Energy($1,485), Coda Automotive ($476), eMeter ($56), Fisker Automotive ($817), GridPoint($229), Miasole ($305), Nanosolar ($395), SolarCity($148), Solyndra($953), Suniva ($375), Silver Spring Networks ($218), Tesla ($783)

Note: Total funding with DOE loans included is in parenthesis

Of the 15 companies, 4 are in the auto industy and 5 are solar companies.

Tesla Motors Model S won't have cars until Q4 2012.
Fisker Automotive won't start building cars until 2012.
Coda announced last week they are building a factory in Ohio for their batteries for their cars and there is no timetable for release.
Solyndra is using trying to thwart off critics that the government is fronting their high manufacturing costs that will be passed onto the consumers.
Codexis tried to sell the green IPO and Earth Day and went flat.
Grid operators Silver Spring Networks are now being chased by Cisco.

The dotcom bust and credit bust makes it hard to sell companies to the large mutual fund investors, hedge funds, and most importantly the general public. Consumers are now back to asking about companies earnings growth, P/E ratio, future revenues, and competition. Green startups are especially plagued by high cost of production and low ROI's. They question becomes can Barack and the companies do enough in the PR department to hide the "under construction signs" before they can became the companies that they and I hope they can become? I truly hope they can. In the big 15 above there will be some consolidation, buyouts, and most importantly real profits before these companies are for real in the eyes of investors.