www.rothmanresearch.com - The recessionary period of 2008 and 2009 had a deep impact on the U.S. manufacturing industry and auto industry, however, there have been some encouraging signs of recovery in the first part of this year. With the manufacturing sector indicating that economic activities were picking up and the U.S. auto industry was looking healthier, companies in the industrial electrical equipment space have also started showing some life. Conversely, almost all stocks in this industry, including China BAK Battery Inc. (NASDAQ: CBAK), and stocks across the broader market, traded in negative territories yesterday as a fear of a global growth contraction sent investors on a selling spree. These worries can be traced to the slowing of the Chinese economic growth which is considered as a major driving force for the global economy.

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One of the exceptions defying yesterday's selling rule was Tesla Motors which saw its debut in the NASDAQ. A much anticipated IPO, Tesla Motors' initial public offering is the first of its kind in the U.S. auto industry for almost 54 years. Tesla Motors is also a bearer of hope for the future of electric cars which have been on a mission to place themselves as the next generation vehicle. This IPO also compelled Goldman Sachs to review its rating on the some electric vehicle battery stocks, passing a Neutral view on both A123 Systems Inc. (NASDAQ: AONE) and Ener1. However, many industry experts believe that the electric cars future still remains contentious, and this is a major reason why Goldman Sachs issued neutral ratings on the two lithium ion battery companies A123 and Ener1, whilst providing lead-acid battery maker Enersys with a buy rating.

*Free downloadable research reports on A123 Systems Inc. and China BAK Battery Inc. are available by signing up now at http://www.rothmanresearch.com/article/aone/23636/Jun-30-2010.html or http://www.rothmanresearch.com/article/cbak/23637/Jun-30-2010.html

On a side note, A123 Systems, a 2009 IPO, had missed consensus estimates in its last quarter and delivered a loss of $0.28 per share.

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