See this article by Ulf Bossel (from december 2006).

We have to solve an energy problem not an energy carrier problem.

For comparison, the "wind-to-wheel" efficiency is at least three times greater for electric cars than for hydrogen fuel cell vehicles.

In a sustainable energy future, electricity will become the prime energy carrier. We now have to focus our research on electricity storage, electric cars and the modernization of the existing electricity infrastructure.

Last sunday I watched Top Gear (as always). Jeremy tested the Tesla and James tested a fuel cell car, the Honda FCX Clarity. The Tesla is a very quick car and a remarkable piece of technology. But, it is unreliable. Two Tesla's broke down and their batteries lasted much less longer than anticipated. And the big issue is (re)charging times. It takes far too long to recharge the batteries.

A fuel cell car sounds more promising in this respect. Filling up your car with hydrogen takes just a couple of minutes. Just like with your current car. The fuel cell produces electricity and the car is powered by electro engines (lots of torque). The fuell cell only produces water as a waste product. This sounds ideal and thus Top Gear predicts a great future for fuel cell powered cars instead of battery powered cars.

However, the problem is: hydrogen! You have to make it. And making it costs a lot of energy. As the research mentioned above describes in detail. It actually costs so much energy that using electricity directly is far more economical. Unless we find a really, really cheap source of hydrogen, which highly unlikely says the research, hydrogen as an energy transport medium is not an economically viable solution.

So, that's it then. We know what to do. Electricity is it. We need more R&D in how to produce electricity from renewable energy sources. We need more R&D in electricity storage (aka. batteries). For cars we need high energy density, inherently safe batteries. We need quick recharging times (< 5 minutes). Stimuli or rescue packages for the auto industry from the government now know what too focus on.

UPDATE: Both Tesla's in the Top Gear show did NOT break down and did NOT ran out of power. See this article. So, the Tesla is more reliable and the batteries last longer than portrayed in the Top Gear show.