In December, Nissan Motor Co. (symbol NSANY on Nasdaq) will ship the Nissan LEAF to selected U.S. dealers. The company aims to begin selling the car nationwide in 2011.

The Nissan LEAF is the first electric car to be widely sold in the U.S. So far, 115,000 customers have paid a $99 reservation fee for the new car. The company aims to convert at least 25,000 of these reservations into firm orders by the time the car begins shipping.

In light of recent developments surrounding this new electric car, we’ve updated our buy/sell/hold advice on Nissan in a just-published issue of Stock Pickers Digest, our newsletter for aggressive investing.

Nissan LEAF benefits from a wide array of government incentives

Recently, the company said that it would sell the Nissan LEAF for $32,780, though the price drops to $25,280 when you include a $7,500 federal tax credit.

The LEAF will also be eligible for further rebates in California and some other states. Nissan will offer a lease program starting at $349 a month, not including tax credits.

In addition, customers who buy the LEAF will also be able to buy personal charging docks from Nissan. These docks will cost an average of $2,200. Here too, buyers of the Nissan LEAF qualify for government incentives: both the charging dock and installation are eligible for a 50% federal tax credit.

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Stick with established green stocks for electric-car profits

One of the main risks of investing in green stocks, including makers of electric cars and related components, is that the subsidies they receive will shrink or end as governments struggle to get their budget deficits under control.

That’s why we think the best way to profit from alternative-energy-powered vehicles like electric cars is through large companies that have the research budgets to stay ahead of the competition in developing these vehicles. These green stocks should also have a sound base of other operations to offset the added risks that electric vehicles entail.

Nissan, for example, is already a well-established automaker; it is Japan’s third-largest after Toyota and Honda. Any subsidies it gets (or in the case of the LEAF, any subsidies that Nissan car buyers receive), will provide a welcome boost to the company’s growth. But Nissan can survive and prosper without them. In contrast, many speculative green stocks will collapse when subsidies end.

The LEAF is only one of this green stock’s advantages

Nissan’s advantage in the highly competitive compact-car market goes far beyond the Nissan LEAF. For example, the company recently entered into an alliance with Germany’s Daimler AG. Nissan has been allied with Renault SA of France for over 10 years. Renault holds a 44.3% stake in Nissan, and Nissan owns 15% of Renault.

As part of the deal, Renault and Nissan will use their compact-car expertise to help develop the next generation of Daimler’s Smart fortwo, as well as a new Smart four-seater. The companies will also develop a new model of Renault’s successful Twingo compact car.

In return, Daimler will provide engines for Infiniti, Nissan’s luxury brand. And Renault will help Daimler’s Mercedes subsidiary develop a new light truck for launch in 2012. Nissan and Renault hope this new partnership will generate $2.7 billion in cost cuts and new business for them over the next five years.

You get our latest buy/sell/hold advice on Nissan and dozens of other companies that could be suitable for the part of your portfolio you devote to aggressive investing when you subscribe to Stock Pickers Digest. Best of all, you can get one month free when you subscribe now. Click here to learn how.