ELECTRIC VEHICLE UPDATE AS GAS REACHES $4 A GALLON

Rocky road for electric car market

The road has gotten bumpier for electric cars.

 As much as I like to report all of the advancing benefits of renewable energies, sometimes you need to report some bad news. Maybe the rising cost of filling up at the pump will renew interest in the EV's.

Coda Automotive, one of what had been a promising crop of electric car startups, filed for bankruptcy protection this month, and said it would reorganize around the electric storage market.

High-end electric car maker Fisker Automotive, which has had financial woes for months, announced meanwhile it was laying off 75 percent of its workforce, raising the prospect of defaulting on US government loans.

Electric cars are still coming to market from luxury maker Tesla, and from major automakers such as General Motors, Nissan and others, but the outlook has become murkier.

Analysts are divided on the outlook, but few believe President Barack Obama's goal of getting one million electric cars on the market by 2015 will be met.

Americans just don't see how an electric car can fit into their lifestyle. We continue to be risk-averse in investing in new technology in our cars. People are aware of the electric cars on the market but there is still a low number of consumers who say they would purchase an electric car. Battery-powered vehicles' share of US auto sales was just 0.08 percent in 2012, and predicts this will reach only 0.47 percent by 2015.

Consumers are held back by a lack of plug-in charging stations, concerns about the range of the vehicle before it needs recharging, and especially the high cost.

Gasoline-powered cars are improving enough to meet the needs of the consumer, without the price tag of electric cars. The lack of range and long recharging times are key factors.

Chevrolet cut production of its Volt last year amid soft demand, and is reported to be working on a less expensive version. Toyota and Honda also scaled back plans for all-electric vehicles for the US market.

There are a few bright spots, however.

Tesla Motors posted its first-ever quarterly profit, of $11 million in the first quarter as revenues rose 83 percent from the prior quarter.

Tesla is banking on its Model S, which sells for upwards of $60,000, by offering special financing and leasing deals with a guaranteed resale price. The car, which has an estimated range of more than 200 miles, was given a top rating by Consumer Reports.

Nissan has boosted sales of its all-electric Leaf to over 5,000 in the first quarter, overtaking the Chevrolet Volt, which has seen sales sputter.