Imagine the U.S. Department of Energy establishes aggressive new energy-efficiency standards for your product. As a result, you spend millions on R&D to meet the challenge.
But it’s all good. You introduce a new product that consumes much less energy than previous models, saving consumers hundreds of dollars over the life of the product. Consumer Reports rates the product among the best. The product becomes a best-seller, and you invest additional millions in plants and people to keep up with demand. You even reshore some production from overseas. Between November 2011 and July 2013, your stock price nearly triples.