ZENN Motors EV soon to hit the road

Shares in Canadian electric carmaker Zenn Motor Co surged for a second consecutive day on Tuesday on positive press for the company and industry developments that bring plug-in electric vehicles closer to the mainstream. Zenn shares jumped almost 10 % to C$5.15 on the TSX Venture Exchange, building on a 22% gain on Monday.

Paradigm Capital analyst Marvin Wolff said Zenn's shares were boosted by a recent interview in which Zenn's chief executive said the all-important battery to power the company's electric vehicle is expected to be delivered before the end of this year.

Zenn has an exclusive license with EEStor, which is a privately owned Texas-based company that is working on developing a battery that it says will be able to power a four-door sedan for 400 kilometers (250 miles) without recharging.

"There is a 'realization that electric cars are coming", Wolff said in a note to clients. Zenn's low-speed, short-range car is a true electric vehicle in that it doesn't have a gasoline-powered generator as do the plug-in hybrid electric cars planned for release next year by large automakers. These include Toyota Motor Co's plug-in Prius and General Motors' Chevy Volt. Wolff said that in recent days three companies have been chosen to supply batteries for electric-hybrid vehicles, another key development in the industry's evolution.

Asked about Zenn's share spike, company spokeswoman Catherine Scrimgeour said there were no new developments to announce. Zenn, which stands for Zero Emissions No Noise, is based in Toronto.

Source : Reuters, by Nicole Mordant, July 21st, 2009