SYNDICATED NEWS
PHOTO CAPTION: Prototype Better Place charging stations will be deployed initially in Israel and Denmark.

Better Place Electric Car Business Model Receives $350M Vote of Confidence

HSBC's year-long due diligence convinces it that Better Place offers a promising new business model for electric car ownership.

Published: 25-Jan-2010

London -- Today, HSBC joined a growing list of investors in a Series B round of financing worth $350 million dollars, making this the one of largest clean technology investments to date and valuing Better Place at $1.25 billion. The funds will be used to continue the development and installation of Better Place charging systems and robotic battery exchange stations in both Israel and Denmark.

In explaining the reason for its investment in Better Place, one which grants HSBC a 10% stake in the venture, HSBC Head of Global Capital Financing Kevin Adeson states that his firm has spent a year studying Better Place's business model, one similar to the cellular telephone industry where its electric car customers are charged based on the miles they travel. That due diligence, including talking with a number of automotive OEMs including Renault, convinces HSBC management that the model is sound and scalable. The French carmaker will provide Better Place with an initial order of 100,000 electric cars, including the Fluence unveiled at the Frankfurt, Germany auto show in 2009.

Adeson listed five reason why HSBC believes their investment in Better Place is sound:

<< PREVIOUSNEXT >>
RELATED NEWS ITEMS

TREV two-place electric car

Student-built vehicle can do 0-60 in 10 seconds with top speed of 75 mph. Photo courtesy of University of South Australia.

Ford's Focus electric car drive system exhibit at 2009 Detroit Auto Show. Photo credit:EV World.com

Reducing the cost of electric car battery packs is the biggest technical and economic challenge confronting automakers.

Fisker Karma has 50 miles of 'Electric-First' driving range

A retailer will need anywhere between $350,000 to just under $1 million to become an authorized Fisker distributor.

READER COMMENTS

blog comments powered by Disqus