Elon Musk’s Power Play

While his fellow billionaires are taking trips into space, Elon Musk is gathering power in more ways than one.

Earlier this week, Tesla reported more than $1 billion in net income during its Q2 2021 earnings report. In the same quarter last year, that number was $104 million. So quarterly profits rose tenfold over a year. This is at a time when some analysts are expecting the company to move 1 million vehicles before the year is over. That’s double the number it sold in 2020.

Still, even if Tesla doesn’t reach that lofty goal, Elon Musk has a lot to be proud of. Electric vehicles replacing combustion engines isn’t a matter of if, but when. Consumers are being won over, governments are building the infrastructure to support these vehicles, and Tesla’s success is forcing other car companies to keep up with their offerings.

Because Tesla not only makes the cars but the batteries and infrastructure, some think that Musk’s company will have a monopoly on the sector.

His company will be at the forefront but will not be the only name.

Other companies are taking note and making their entries in the sector. They’re taking up their shares of a market that’s growing right along with rising support for and awareness of the technology.

And the news this week doesn’t end with Musk’s good fortune.

President Biden also made another push for electric vehicles. Just yesterday, he held a summit at the White House where he celebrated his signing of an executive order that aims to make half of all new vehicles sold in 2030 electric. The biggest automakers in the U.S. are in favor of the move, which will help fight climate change and put the country at the forefront of the market, ahead of China.

It’s going to require more batteries, more charging infrastructure, and more manufacturing to make it a reality. That all means billions more in spending, with entrenched companies and up-and-comers alike set to benefit over the next decade.

Because of the success of companies like Tesla, along with falling battery costs, this massive shift is poised to become one of the biggest investment stories in living memory. It’s a tall order, yes, but it isn’t impossible.

While electric vehicles are the face of this change, it’s hardly the only sector set to benefit from the coming changes to power distribution in the country.

Our power grid is aging and this coming increase in electric vehicles and charging infrastructure is the catalyst it needs to move into the 21st century. As it does that, not only will it change the way you and I drive, it will change the way we live and work, too.

The country’s power grid is going to look very different sooner than you might think. The big power plants that everyone relies on will play less of a role, and everyday customers will play a bigger role thanks to distributed energy. This makes power grids smaller, more localized, and better able to handle demand in the communities they serve because the storage and generation will be right there in those communities.

Cars, homes, and everything else that requires power will draw from this technology. Power company monopolies, blackouts, and other disruptions will be things of the past as more money pours into this distributed power model and the companies behind it.

One particular company is already seeing success in using this model. It’s small now, but it won’t be once this technology becomes more widespread. Some in-the-know investors have already started buying up shares and you should be doing the same.

It’s only a matter of time before this company sees the benefit of getting in on the ground floor of a major trend. You can do the same by learning all of the details.

Keep your eyes open,

Ryan Stancil
Editor, Daily Profit Cycle

Ryan Stancil is an editor and regular contributor to Daily Profit Cycle. He’s been active in the financial publishing industry for more than half a decade, offering insights and commentary on technology and geopolitics to help readers make sense of the constantly changing landscape and how it affects their investments. His readers appreciate his "tell it as it is" writing style, where he always offers a fresh new perspective on what's happening in the market and leaves nothing unsaid.