A lot of folks, for whatever reason, love to hate electric carmaker Tesla (TSLA).
Maybe it’s the antics of its South African-born founder and CEO Elon Musk.
Maybe it’s to do with Musk warning that global warming is a threat… and that we need to decarbonize the economy or face environmental disaster.
Maybe it’s because Musk is also one of the richest men on Earth. He’s worth $32 billion. And he’s one of the world’s most successful serial entrepreneurs.
He’s also genius-level smart. In December 2015, he became the first person in history to build a rocket ship that can take off and then land again.
Or maybe you just hate listening to smug Tesla owners yammer on about how superior their Teslas are at dinner parties.
But no matter where you stand right now on Tesla… or Musk… stick with us. Even if you’re not a fan, you’ll learn something that most folks don’t get about the controversial company.
As you’ll see, there’s one thing the Tesla bears get wrong. And it’s causing them to miss out on a massive profit opportunity, according to our tech expert, Jeff Brown.
The mainstream press is full of them.
Take the following headlines from the start of last year…
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“Tesla’s promise of ‘full-self-driving’ angers autonomous vehicle experts” – CNN (3/2/19)
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“Tesla Stock Slides After Delivery Figures Signal Weaker U.S. Demand” – The New York Times (4/3/19)
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“Tesla may be about to lose a key group of investors that have stuck with the struggling stock” – CNBC (5/7/19)
- “Tesla Stock Is in Trouble, and Elon Musk Has Gone From Iron Man to Inspector Gadget” – Barron’s (5/24/19)
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“Tesla’s Capital Raise Offered No Real Benefit To The Company Or Its Suffering Shareholders” – Forbes (5/9/19)
Now, look at this chart of Tesla’s share price last year…
From its low of $179 last June to today’s closing price of $572, Tesla is up 220%. That’s more than almost seven times the gains of the tech-heavy Nasdaq index over the same period.
As Jeff commented in a private email exchange with his analysts about the rally…
Not sure if anyone has been watching Tesla lately. I was called crazy and stupid for my bullish call on Tesla back in December 2018. I even got feedback from people that came from the industry. Now, there was no doubt I was early. And we got stopped out by a big bout of volatility. But look at the share price now. It’s exactly as I predicted. I may have been early but, holy smoke, was I right.
So why did the mainstream financial media miss the 200+% rally in Tesla shares?
But it’s not…
As Jeff explained it to our Near Future Report readers…
Wall Street focuses on demand for electric vehicles. Or how many Teslas get shipped each quarter. This shows me they still don’t understand what Tesla is.
It’s NOT a traditional car manufacturing company. It’s actually one of the world’s most advanced AI [artificial intelligence] companies. That’s the big secret most investors haven’t figured out yet.
AIs pilot self-driving cars. And Tesla’s AI pilots are the best in the world. That’s because AIs learn from processing vast amounts of driving data. And Teslas have racked up more self-driving miles than any other company. As of July, Teslas had driven themselves 1.6 billion miles. This year, it’ll be 2.2 billion. Within the next 18 months, it’ll be 10 billion miles. That’s exponential growth.
And Tesla will have more than a million vehicles on the market within the next 12 months, all capable of driving themselves. That’s why most analysts are dead wrong about where the stock is going. Jeff again…
To build their cars, every other carmaker in the world starts with an engine and a chassis, fills in the details, and then writes software to help control the car.
Tesla is the exact opposite. Tesla first designed a powerful software architecture that included AI. They built a car around it. The software comes first.
Teslas are connected to each other via the internet. So the company can process and analyze a gigantic amount of driving data. This is making it a leader in AI.
They have an assisted driving mode called Autopilot that is pretty darn close to fully autonomous.
You’re still supposed to stay alert in Autopilot mode, as there may be some issues.
But it’s so good, Tesla owners fall asleep at the wheel….
Source: Twitter (@DakRandall)
But thanks to Tesla’s AI advantage, Jeff says fully autonomous driving will be ready this year. That means it’s so safe, falling asleep at the wheel will be the norm.
There will cease to be any need whatsoever for a human driver. You don’t even have to sit in the driving seat if you’d prefer not to.
On a long journey… you can just snooze completely lawfully in your car while traveling at 65 miles per hour down the highway.
With other carmakers, you have to bring your car back to the dealer to have a software update installed.
But Tesla isn’t a car company, it’s a tech company. And it works like a tech company.
Take two of the biggest tech companies in the world, Apple (AAPL) and Microsoft (MSFT). When they want to update their operating systems, they don’t get you to go back to the store with your laptop.
They push out software updates over the internet to you and all their other users.
Tesla does the same thing.
It sends out a software update to its internet-connected fleet. This upgrades existing Teslas to the most advanced self-driving cars in the world.
And there are a lot of Teslas out there ready to be upgraded…
It’s another great example of exponential growth. Tesla has 750,000 vehicles capable of driving themselves once they get the update.
And that will hit the 1 million mark within the next 12 months.
As Jeff has been telling his readers, it means Tesla owners will soon be able to include their Teslas in a commercial network of self-driving cars.
This will allow them to earn extra cash with their Teslas when they’re not using them.
And that’s going to be most of the day.
The average car owner uses his car for just 5% of the day. For the other 95% of the time, it’s parked. Here’s Jeff with more…
Imagine this… You arrive at work in your Tesla, get out of the car, then press a button on a smartphone application that instructs your Tesla to “join the fleet.” While you’re at work, your Tesla is out driving itself… giving rides, earning money… and returns back to your office at the end of your workday.
This turns your car into an income-producing asset. It can be out there generating extra cash for you every day.
This is not something you’re going to be able to do with a Chevy… or a Toyota… or a BMW.
Right now, Teslas are expensive.
And a top-range Model S will set you back $80,000. For that money, you could buy a fully-loaded Corvette Stingray.
The lowest-priced Tesla, the Model 3, is more affordable at $35,000 and up. But for that money, you could still buy a BMW.
But still, last year in the U.S., Tesla sold more Model 3s than the BMW 2, 3, 4, 5, 6, 7, and 8 Series combined.
Between January and November 2019, Tesla sold more Tesla Model 3s than BMW sold of all the cars listed above.
Imagine what will happen when Tesla switches on fully autonomous driving. Tesla owners will be able to offset some of the ownership cost by earning income on their Teslas.
It will be like having your own AI Uber driver working for you… and collecting cash on your behalf.
It sounds crazy at first. But think about it. It’ll be fully insured, so there’s no risk of irreconcilable damage. You can pick your clientele. And you save on parking fees.
This will completely change the nature of car ownership. And it makes Tesla a stock to watch. If Jeff is right, Wall Street doesn’t understand it. Neither do the talking heads on TV.
And that spells opportunity for investors who do.
There are so many head-spinning technological breakthroughs right now. From 5G wireless technology, to artificial intelligence, to personalized medicine and biotechnology.
But as Jeff revealed last night, this last category is going to be one of the most insanely profitable trends for the next several years.
Last year alone, the average gain for the top 10 companies in the Nasdaq Biotech Index was 691%. The top gainer shot up 3,565%.
But as Jeff explained last night, you want to pick up shares in companies that are still small. It’s one of the few areas of the stock market that still provide opportunity to make crypto-like gains.
Jeff calls them “timed stocks.” These are a small group of technology stocks that – thanks to a government mandate – have a preset “timer” attached to their shares.
And some of his readers recently locked in gains of 432% in just 41 days by investing in just one “timed stock.”
Last night, Jeff revealed more about how “timed stocks” work… why they accelerate so quickly… and how you can add them to your portfolio today.
If you were interested but unable to make it, you can catch it all here for a limited time.
Do you own a Tesla? Will you go back to a gas guzzler? Are you convinced by Jeff’s bullish investment case for Tesla? Write us at [email protected].
Regards,
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Chris Lowe
January 23, 2020
Cartagena, Colombia
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