Proterra (NASDAQ: PTRA) is often known as "the Al Gore bus company." But while it's true that the former vice-president is an investor, Proterra makes drivetrains, high-voltage batteries, and charging stations for electric vehicles, with bus manufacturers among its clients. Electric cars get all the press, but the entire transportation industry – from cars to merchant marine vessels – is talking about alternatives to fossil fuel power. If you believe the government is going to back climate change policies and electric vehicles, then Proterra could be in the right place at the right time. 

Most investors interested in EVs focus on passenger cars, because many electrical systems and components for power-heavy commercial vehicles struggle to replace diesel engines. Effective electric powertrains for commercial vehicles cost a lot to develop. But governments from various countries are taking initiatives to electrify their public transportation to reduce CO2 emissions, with Europe taking the lead in the West. As of now, only a few commercial vehicle manufacturers have introduced electric buses, most of them in Europe and China -- but that's beginning to change, giving Proterra a significant opportunity.

Electric power trains for trucks and buses can be hard to develop; you need specialists focused on these systems to do it right. A well-built electric power train can cut a vehicle's weight, so that it requires less power to get around. That's the opportunity for Proterra, as the only pure-play specialist in electric powertrains for large vehicles. 

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Source Fool.com