The car of the future most likely will run either partially or completely on electric power, and supplying that power is the province of A123 Systems (NASDAQ:AONE). In August, GM chose A123 to produce batteries that will be used in future electric vehicles being sold in select global markets. More recently, A123 entered into a deal with Indian automaker Tata Motors (NYSE:TTM) to make lithium ion battery packs for use in commercial vehicle hybrid electric systems.
The company has had contracting revenues of late, thanks to a delay in orders from luxury electric vehicle maker Fisker Automotive. But this probably is just a speed bump on the road for A123, as more and more hybrid vehicles will be produced in the years to come — and that undoubtedly will allow A123 to power up both revenue and earnings.