Sell Tesla, Buy This

You’re not going to like this.

It’s an incredibly unpopular opinion right now in the market, and I won’t blame you if you’re skeptical at first.

I’m talking about selling Tesla.

Now, for those of you who have been watching Tesla’s share price surge over the last 11 months, it’s easy to understand why you’re squarely behind Musk. Over that period, he’s increased the value of your shares by roughly 90%.

No matter how you feel about Elon Musk, nearly doubling your investment inside of a year is a win in any book.

Now, you need to look past the hype and recognize the grim reality behind Tesla ramping up EV production.

In fact, Musk seemed cautionary during his last earnings call after telling shareholders:

So, I would simply urge people to not get too caught up in what exactly falls within the exact calendar boundaries of a quarter, one quarter or the next, because when you have an exponentially growing production ramp, slight changes of a few weeks here or there can appear to have dramatic changes, but that is simply because of the arbitrary nature of when a quarter ends.

Was he trying to cut the hype and lower expectations?

Are those pesky quarterly conference calls updating us on Tesla’s performance just a nuisance for a company looking over the long term?

Maybe.

To be clear, Musk said himself he’s still confident that his Gigafactory will be pumping out 10,000 vehicles per week by the end of 2018.

Except there’s one serious catch to this story (and one huge reward for early investors)…

$240 Billion or Bust

Before I show you the true lynchpin keeping the wheels turning at Tesla, first understand why this growth is so critical to your Tesla position.

Forbes recently reported that the EV market could become a $240 billion market within 20 years.

For that to happen, EVs will have to account for 40% of the world’s vehicle purchases.

That equates to 40 million EV sales per year by 2040.

So even though Musk’s Gigafactory is projected to churn out 500,000 electric vehicles, he has a lot of growth ahead if he’s going to corner this market.

After all, he’s got a ton of competition from China, where more than 140 manufacturers are furiously building up battery cell capacity.

As you can see in the chart below, China is THE dominating force in battery production:

But it’s not the competition you should be worried about.

Sell Tesla, Buy This

I told you to forget buying Tesla two days ago.

Why?

Because I want you to think bigger.

There’s one material that’s so important to the EV recipe that it is weighing the $59 billion company down.

And it’s NOT lithium.

Throughout history, this element has gone by many names: goblin metal, Elon’s element, and, in recent years, insiders have quietly referred to it as “Blue Gold.”

But it’s not just Tesla that needs this crucial component for EVs.

Everyone does.

Let’s not sugarcoat this situation: Tesla would collapse overnight without a secure supply of “Blue Gold” on hand.

The same can be said for any company hoping to produce lithium-ion batteries in the future… including China.

Think about that for a moment: a single resource controls the future of the EV market.

I want lay it all out for you in full right here, or you can read the entire report here.

You owe it to yourself to at least check out the details on this one.

Until next time,

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.