It's been on the radar for weeks. But, not even the investors who knew something big was coming could have predicted the splash that Green Automotive Co. (OTCMKTS:GACR) would be able to make at the upcoming Limousine, Charter, and Tour Conference in Las Vegas. It is "the" event of the year for the industry, when new products are showcased, when buyers make decisions, and when deals are made. And, given what GACR has ready to display at the conference, this little company could end up stealing the show.
First things first. For those not familiar with the company, GACR is an electric vehicle company. That description doesn't do it justice, however. Green Automotive Company is actually in the business of useful, practical electric cars for average people in the mass market, rather than a company that (1) talks about someday getting into the business of electric cars, (2) makes EVs that are little more than battery-powered go-carts, and (3) isn't selling electric cars at a price that's out of reach for most consumers. In other words, GACR "gets it." That's how it became an all-inclusive EV name, offering service to existing electric vehicles, providing design service for an upcoming EV for an EU consortium, acting as a dealer for a wide variety of electric vehicle manufacturers, and serving as a manufacturer of electric-powered shuttle buses... where the biggest opportunity for electricity-driven vehicles is quietly waiting for someone to tap the opportunity.
It's the last arena - the bus arena - that is going to allow Green Automotive Co. to turn a lot of heads next month. Through its subsidiary, shuttle bus maker Newport Coachworks, GACR has already gotten some attention, and some sales, by producing a 100% battery powered shuttle bus. If you don't think there's demand for such a vehicle, try this on for size - Don Brown Bus Sales has already ordered nearly 500 of them. Thing is, Green Automotive Company booked those orders without even having a proven product on hand to demonstrate. In fact, it sold its first battery-powered buses before it even began building its first one.
Fast forward to today. If GACR can drive sales of 500 units without the benefit of a demo model, and without even much of a concerted sales effort, what kind of sales could be generated when the company actually has a product to show? The answer is, a whole lot more. Well, Green Automotive Company now has that product ready to show. The so-called e-Patriot shuttle bus will be on hand at the February limo and bus show in Las Vegas, seen by hundreds of companies and buyers looking for a way to save money and/or improve the quality of their shuttle service. An electric bus is something they've never seen before that can accomplish both goals; the specs are amazing. The e-Patriot can travel 100 miles on one charge, and can achieve speeds of up to 60 miles per hour. The operating cost? A typical shuttle bus costs 14.5 cents per mile to run, versus 2.5 cents per mile for electric shuttles. Needless to say, buyers will be excited.
It's not just the LCT show that could be a catalytic event for Green Automotive Co., however. Once word gets out that such a product exists, demand could spread like wildfire. There are tens of thousands of shuttle buses already operating in the United States, and the figure reaches hundreds of thousands on a global basis. The market GACR is tapping into could be worth hundreds of millions of dollars per year, and reach into the billions once electric taxis become the preferred way of personal paid-transportation.
Almost needless to say, 2014 is going to be a real "coming of age" period for Green Automotive, and its investors.
For more on Green Automotive, visit the SCN research page here.
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