John Carl,
Editor
Nov. 15, 2024
Tesla is on a winning streak.
CEO Elon Musk’s close association with Donald Trump has been seen as a win for Tesla. In the ten days since the Presidential election, Tesla has added 27% to its share price, putting it at more than double what it was during its low back in April.
Tesla is now a trillion-dollar company — and I think this is only the beginning of what we’ll see in the years ahead.
Earlier this year my colleague Chris Curl and I added Tesla to our Digital Dispatch portfolio, telling readers to buy anywhere below $200. We reiterated that recommendation when Tesla hit $150. Now at $322, these have been timely calls.
And our contrarian position in Tesla during that summer slump has been rewarded now that Tesla is back at center stage.
But this isn’t Tesla’s only winning gambit. Elon has positioned the company to lean into its AI-fueled technologies, robotics and Full Self-Driving (FSD) cars. Both markets are potentially worth trillions on their own.
Below is what we wrote to our Digital Dispatch readers in our November issue, which was released on November 1st, just days before the election.
Its message is now more urgent than before...
Tesla Skips Billions, Goes for Trillions
Elon ups the ante on Tesla’s future prospects.
Elon Musk has always been a figure of intrigue and controversy in the tech world, surrounded by both fervent supporters and skeptical critics. Perhaps it's his unique combination of wealth and neurodivergence that has given birth to his most significant personality trait: he doesn’t care what you think of him.
This has been illustrated by his purchase of Twitter (X), and his resulting fight with advertisers, politicians, and celebrities alike.
And perhaps the most poignant example of this attitude was the “We Robot” event that occurred on October 10th which showcased some of Tesla’s boldest claims yet. It presented a vision of the future that is both fascinating and peppered with uncertainty.
Particularly striking was Musk's proclamation that the upcoming Cybercab, optimized for autonomous transport, would be in production by 2026 at a price point under $30,000. This ambitious timeline is not Musk's first; his predictions often boast delusions of grandeur, leaving the world questioning their feasibility. One just has to look back to the Cybertruck debacle for a recent example.
And the We Robot event was no exception, giving a vision of a future where autonomous vehicles are the norm, and not the exception. A standout moment was the emphasis on Tesla's humanoid robot, Optimus, with Musk describing it as potentially the "biggest product ever."
Critics cite Musk's predictions as mere "puffery"—a mix of exaggerated promises that aren't grounded in current technical capabilities. Particularly in reference to the Optimus robots who were in attendance at the event serving drinks and interacting with guests. While their lifelike interactions were incredible, it was quickly noted that they were being remotely operated by humans, which took some of the awe out of the presentation.
Still, it was incredible to witness and is but a stepping stone to fully autonomous humanoid robots. We continue to maintain that Elon will make these a reality, and when that happens, they will transform many aspects of our economy.
And just as it took years to fully develop self-driving capabilities for its cars, these Optimus robots will need a lot of human intervention in order to “learn” how to perform the many functions of a human being.
The director of the sci-fi film "iRobot" even accused Elon Musk of borrowing designs from his 2004 movie for Tesla’s newly unveiled products, including the Optimus robot, Robo taxi, and Robo van, presented at the We Robot event. Alex Proyas took to social media, humorously questioning Tesla if he could have his designs back.
I have to admit Proyas has a point. But it seems that much of this was intentional, even down to the name of the event itself.
While much of this event lacked substance, I think Elon is dead serious and will deliver on his promises – albeit probably not in the timeframe given. And sure, he could have given investors what they wanted…notably a $25,000 Tesla car…but it’s not in Elon’s nature to aim low.
Musk's vision remains compelling, suggesting a transformative future where technology seamlessly integrates into daily life. In unveiling the Robotaxi and Optimus Robots, Elon is playing the long game of innovation – which promises trillions and not billions in future revenue.
It has been estimated that Tesla’s robotaxis could generate $1.7 trillion in revenue by 2040 and that the Optimus robot if fully implemented could generate $1 trillion in annual earnings.
Time will tell if these dreams come to fruition, but based on past performance, we think betting against Elon and Tesla achieving these goals is foolhardy...
To read more about our current Tesla recommendation (plus the AI and cybersecurity stocks that are adding double digits as we speak), this is an ideal moment to check out Digital Dispatch.
This won’t be the last time we help our readers double their money on timely tech investments — in fact, we just closed another winning position this very week, on Wednesday, cementing 335% gains on the AI cybersecurity firm Palantir.
We have several more positions that are adding double digits as we speak, and there’s still time to catch them — find out what we’re buying now.
Make it your own,
John Carl
Editor, Daily Profit Cycle