Last week I shared some of the research findings from my trip to the US. I mentioned, in passing Tesla Motors.
Let me give you a quick heads up – and I mean quick. This machine goes from zero to 100/no points on your license in a punchy 3.2 seconds. I took it for a test drive and it blew me away, really showing up every performance car I have ever had. The floor panel and chassis of the car is where the batteries live – hence the centre of gravity is extremely low. It is rated as the safest 4 door car in the US, and unlike most other cars in the electric/hybrid space, there is ample boot space given that the battery is in the floor, not the boot. Pretty smart!
Now, what do McDonalds and Tesla have in common?
McDonalds do burgers, right? Wrong, as most know, the burgers are the cashflow, the real business is real estate. Having a franchise simply provides a guaranteed rental flow and yield.
So what about Tesla – they do electric cars, right?
Maybe, but the real business is batteries. The company’s announcement of large scale power storage – either home or commercial/industrial batteries is massive and represents a mainstreaming of the cutting edge technology within the power of its cars. After all, little has changed in the world of batteries for a while and there is massive room for a serious player that has the technology and leap frog on the rest of the market.
With 320 days of sunshine on average in Southern California (as well as notoriously high energy costs) – more in other areas of the US, such as Nevada, New Mexico and the like, solar driven charging and then storage represents a genuine challenge to the existing power grid. Imagine the potential for this in Australia?
Add to that what is effectively zero costs for running your car and things look very interesting, particular if your Tesla needs a service every 100,000 miles and has an 8 year unlimited mile warranty!!
I have now had sign off from my Wife, so I am seriously looking to cancel the order I have in for a 6ltr W12 gas guzzler and switching to a Tesla for a lot of reasons. Pop a baby seat in the back, and bingo, the perfect environmentally friendly around town vehicle, that can still give your “male ego” a needed rub, when pulling off from the traffic lights – especially if you hit the “insane” button on the touch screen control panel!
The company’s gigantic battery factory in Reno provides the capacity for the company to be a very serious player, not just in supplying batteries to the car industry beyond their own brand, but to the mainstream community. The potential is effectively limitless.
This means opportunity – want to see how we translate this investment idea into trades and potential profit? CLICK HERE