Investors Embrace A123, But Is Lithium the New Ethanol?

HybridCars.com
Published September 25, 2009

The smash hit IPO of lithium ion battery maker A123 Systems is sending waves of euphoria through the clean tech and plug-in car market. Mass.-based A123 Systems is now worth nearly $2 billion—indicating huge investor confidence in the future of electric cars, plug-in hybrids, and the batteries that make them go. Yet, A123 has yet to make a profit and faces significant hurdles to mass commercial success.

In the first day of trading yesterday, A123 Systems rose more than 50 percent to as high as $21.14 before closing at $20.29. The company raised about $380 million, well above its original estimate of a minimum of $250 million.


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