One of the best ways to make a ton of money in the stock market: Look underneath investment megatrends.
Most investors simply look at the surface of an investment megatrend. That is, they see the headline megatrend, and think that the only way to invest in that megatrend is by investing in the megatrend itself.
They simply forget that paradigm shifts in the economy have what I like to call “derivatives” – or, in simpler terms, economic butterfly effects.
As many of you know, the butterfly effect is the broad idea that both small and large events can have non-linear impacts on a complex system. It’s most usually imagined through a butterfly flapping its wings and subsequently, through a chain of events, causing a typhoon.
The global economy is subject to butterfly effects, too.
Case-in-point: The Electric Vehicle Revolution.
Whenever anyone mentions the EV Revolution, most folks immediately think about the first-order impact, which is the shift from gas-powered cars to electric cars. As a result, most investors think that the best way to play the EV Revolution is through buying stock in companies that make electric cars, like Tesla.
But the EV Revolution is much more than consumers deciding to drive electric cars and not gas-powered cars. It’s a tectonic shift in the multi-trillion-dollar transportation market – and as a result, it promises to have multiple second- and third-order impacts.
- Charging stations. The EV Revolution simply cannot happen – and everyone cannot simply switch to electric cars – unless the world also swaps out gas stations for electric car charging ports. The number of EV charging ports in the world will grow by many multiples over the next decade.
- Battery makers. As the EV Revolution gets underway, mass adoption will hinge on the performance and cost of the vehicles. Most specifically, they have to last longer and cost less – and those advancements all come down to the battery, meaning demand for and investment in battery tech will soar in the coming years.
- Lithium miners. The battery is everything in the EV Revolution, and while batteries come in all different shapes and sizes, they all also have one thing in common: They’re made from lithium. Consequently, the EV Revolution promises to catalyze a spark in lithium metal demand, which means well-positioned lithium miners will make a fortune in the 2020s.
Investing in these “derivative” markets is where the big money will be made over the next few years.
Today, we are going to tell you about one of the most explosive investment opportunities hiding “underneath” the EV Revolution. It’s an electric motor technology company that almost no one is talking about today, but which holds the patents to a potentially game-changing technological breakthrough that could become a ubiquity in the EVs of tomorrow. If all goes right, this is easily a 10X or bigger investment opportunity in the coming years.
A Potentially Game-Changing Electric Motor Technology that Could Make Its Way Into Every EV in the World
The enormous shift towards electric vehicles will be accompanied by an equally enormous shift towards electric motors, creating one of the most attractive “derivative” investment opportunities in the EV Revolution.
Long story short, electric motors are scientifically unique from diesel motors, and therefore, the suppliers of electric motors are often different companies than the suppliers of diesel motors. Over the next few years, then, electric motor makers will see a surge in demand that should be reflected in rising stock prices.
In this rising tide of electric motor makers, there is one company that stands out from the pack, and that’s a tiny, $400 million company you’ve probably never heard of before: Exro Technologies (OTCMKTS:EXROF).
Here’s the story.
In a nutshell, Exro Technologies has designed and holds all the patents to a potentially game-changing coil driver technology that could be the key to optimizing EV performance.
In order to break that statement down, we first need a quick Physics 101 recap.
Speed – as we all know – is how fast an object is moving. Torque is the rotational equivalence of linear force. As a result, the torque of a machine can actually be mathematically represented by the power of that machine divided by its speed.
In other words, thanks to the laws of physics, torque and speed are inversely related. More torque, means less speed, and more speed, means less torque.
That’s problematic for electric motor designers, because a car needs both torque and speed, i.e. sometimes a car needs to go fast, and other times it needs to go uphill without failing.
Traditionally, the solution for this electric motor torque-speed optimization problem is to either add-in a gearbox or use two separate motors, both of which add unnecessary costs and weight into the EV.
Insert Exro Technologies’ coil driver technology.
The underlying technology is quite complex. In essence, Exro employs a combination of advanced switching circuitry and a microcontroller running AI-powered algorithms to determine the optimal configuration of coils the electric motor needs at any given time, in any given situation, to optimize the torque-speed profile of the vehicle.
The big-picture takeaway, however, is simple. Exro’s tech can optimize EVs for both torque and speed without adding that much more weight or costs into the system.
It’s a potentially game-changing solution that – if it works at scale – will one day become ubiquitous across the EV industry.
There’s proof that it does work. The tech has been independently verified by ELEN-MECH consulting, and has been shown to either result in a 7% range gain for EVs, or a 7% reduction in battery size, all while driving costs down by more than 20%.
Exro currently has 8 commercial partnerships across various different verticals. Those partnerships are in the development phase today, but should enter production phase within the next few quarters.
As those partnerships kick into production phase, you could be witnessing the beginning of what may turn into a multi-year, hyper-speed growth narrative wherein Exro Technologies goes from this niche electric motor company that nobody knows about today… to this household name whose tech is being used in every EV on the road.
And that’s why – if you’re bullish on the EV Revolution – you should consider taking a position in Exro Technologies stock today.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this video.
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