A123

It wasn't that long ago that I was exposed to the amazing potential of electric vehicles at Wrightspeed and Tesla - not just horsepower, but also energy efficiency. If you look at the internal combustion automobile as a system, the energy input is gas and the output is primarily kinetic energy (motion, friction, heat, sound). The loss is large, but in the past is was easier to tap and refine the source, oil.

In the next decade, I believe that electric vehicles will play a larger role in the automotive industry than they do today. The reality is that if you exclude the source of the electricity, the total loss in the electric automotive system is diminutive.

As companies (e.g. A123 systems) continue to improve their cell capacity, the rise of electric vehicles is increasing faster than we may expect. Companies that don't plan accordingly for these advanced powertrains may be lost in the dust. More importantly, regulation may force their hand into conformity or extinction.