Is he a brilliant innovator creating the next world-beating company?
Or is he a brilliant eccentric with fascinating ideas but whose company never gets past a certain point?
I’m not sure we know the answer to that question yet. But what I do know is that Elon Musk is front and center in some of the giant investment trends in which investors can make 20 times… 30 times… even 40 times their money.
If you bet against him, you take your chances. If you bet with him, you take your chances as well.
Most of the giant investment trends Musk finds himself in the middle of fall into what I call Transportation 2.0 – an industry I have no doubt will be worth trillions of dollars one day.
He is in electric cars.
He’s in space exploration.
He’s in pot.
That’s not transportation, I know, though it is a giant investment trend. And Musk doesn’t have any marijuana companies. But he did make headlines for smoking a joint during a podcast last fall. Like I said… he’s controversial.
We saw that again this week in relation to another monster trend, self-driving cars. Musk is in some hot water on this one right now.
Tesla’s Bold Claim
The undeniably brilliant leader of Tesla (TSLA) has his company manufacturing its vehicles with the hardware needed to be fully autonomous. That means that as soon as the software is developed and tested, it could theoretically be uploaded right to the vehicle…
Making it instantly autonomous.
And that could be a game-changer.
There are a wide range of predictions of when this will occur. My own expectation is somewhere around the early part of 2020. According to Musk, the time may come sooner than later.
Earlier this week, Tesla released its new Model 3 electric vehicle. The Model 3 retails for just $35,000 and features a redesigned interior and the ability to go from zero to 60 in 5.6 seconds. It’s fully electric, though its battery life is a bit shorter than its predecessors at 220 miles per charge. But a slightly boosted version of the vehicle – the Standard Range Plus – can travel up to 240 miles per charge.
To top it all off, for a $5,000 upgrade the Model 3 will come with full self-driving capabilities that could be installed later this year.
Not in 2020. In 2019.
Kind of. I think Musk needs to tap the brakes here.
The release of Tesla’s first affordable electric vehicle is a milestone for the company. Musk said that was the “whole point of Tesla.” However, the optional add-on feature is overshadowing the announcement, as it has brought about a lot of scrutiny and criticism.
According to Tesla, the update available later this year will allow for “automatic driving on city streets.”
But that’s total BS – if you’ll pardon my French.
A spokeswoman for the company declined to comment to CNN Business on the feature’s details and instead pointed it to the fine print on Tesla’s order page. I took a look, and here’s what it said…
I’ve underlined the key phrases: “active driver supervision” and “do not make the vehicle autonomous.” Doesn’t exactly sound like “automatic driving on city streets,” does it?
In reality, Tesla’s feature is simply a partial self-driving feature. If a driver can’t take a nap and get to his destination safely, it’s not a fully self-driving vehicle.
Tesla’s claims are frustrating and confusing. They go hand-in-hand with recent accusations that Elon Musk has gotten a bit loose with the company’s advertising – his questionable social media action has garnered quite a few headlines.
While I do admire Musk, his fearlessness, and his ideas, there is too much going on with him to make Tesla a good investment right now.
All that said, Tesla’s rush to claim self-driving capabilities is evidence of the Holy Grail that is the future of automobiles. Self-driving cars are coming. And they’re going to be huge.
Investors need to be making money on the transportation revolution. Tesla may not be the way to do it right now, but other companies are ripe for the picking.
A Trillion-Dollar Shift
Transportation 2.0 has the potential to be a multi-trillion-dollar industry. And when I say trillions of dollars, I’m not kidding.
Vehicle sales, supplies, and service are already a $7 trillion industry, and it’s one that is about to be changed forever. I guarantee whatever you can envision right now is only the tip of the iceberg. It’s just like 10 years ago when the first iPhone was released. Very few people imagined how that device would change our world.
Innovation is often difficult to imagine beyond a few years. But the people who can grasp where the world will be in the next decade are the innovators disrupting industries right now around the globe.
Those innovators are the companies my subscribers and I are invested in at Investment Opportunities.
Many are flying under the radar right now, which only increases their potential. One such company is a leader in LiDAR technology. LiDAR is short for “Light Detection And Ranging.” It is a detection system similar to radar, except it uses light from a laser pulse instead of radio waves. In short, without this company’s LiDAR technology, self-driving cars could not exist.
I recommended the stock in my Investment Opportunities service six months ago, and we’re up nicely. There is much more upside to come, and I just raised my buy limit this week to give subscribers a chance to get in on a pullback.
Another company I recommended in the just-released issue has ties not just to this growing sector – it is focused on building a complete AV system that it can sell to automakers – but countless other high-growth industries as well. It encompasses nearly every one of my favorite long-term investment themes… and I can’t begin to tell you how rare that is.
We’re now being presented with what I expect will be one of the best buying opportunities of the year.
The race to fully self-driving cars is fast and furious – Tesla’s rush to jump the gun is further proof of that. When an industry like transportation is disrupted, it will lead to trillions of dollars moving from the old to the new. You want to own the companies that will be on the receiving end of that shift.
P.S. I believe the coming AV revolution is one of the biggest investment opportunities we’ll ever see. That’s why I’ve spent hundreds of hours researching and analyzing the industry… and sharing everything I’ve uncovered with my Investment Opportunities subscribers.
You, too, can get all my research on this mega-trend – including the absolute best AV stocks to own today.
As autonomous vehicles go mainstream, I’m absolutely convinced their adoption will create huge fortunes at incredible rates of speed. If you can claim a small stake in the companies developing this technology now, you could benefit from one of the rarest, most powerful economic forces in history. Click here to learn more.
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