I honestly do not know why so many people are thinking that something is wrong with Tesla and why it must be saved now. All other autos on another hand need a very serious shake up, just to survive what is coming now. Tesla Model 3 will unleash the true mass market for electric cars. Tesla has outsold Audi 8, BMW 7 and Mercedes S-Class last year in the Western Europe already, now Elon Musk is going for the BMW 3 admirers.
While a general public is still sleeping at the wheels of cancer hazard polluting diesel and petrol cars, "Electric Billionaire Club" is busy adding billions to their fortunes. Elon Musk is working now on his "Secret Master Plan" promised to be released shortly - I guess to add to the excitement and publicity around Tesla Gigafactory Grand Opening on July 29th. What this one will be about? "Creating a seamlessly integrated Tesla battery & solar power product that looks beautiful", as Elon Musk twitted about the reason for Tesla buying out Solar City. Will Tesla announce the "Mobile Phone" style payment plan for its Electric Cars and Solar systems, when customers can choose an electric car from Tesla or add to it Tesla's Solar System including Energy Storage and pay a simple monthly fee for it? Or can we expect something even more groundbreaking? For example, like how to make millions of electric cars Tesla Model 3 really super fast? I will throw the wild one: major strategic alliance announcement with Apple to build dozens of Gigafactories all around the world and license Tesla Model 3 powertrains.
Or will it be another member of "Electric Billionaire club involved? Warren Buffett has a stake in BYD. This New Energy conglomerate from China is the largest EVs manufacturer in the world, conveniently located in the largest market for electric cars in China. Any combination of technology, skills, capital and market access in China between Tesla and BYD will throw all other automakers back in the ICE age overnight. Then Sir Branson will be definitely right on the spot with his prediction.
Elon Musk Moves To Tesla Solar Cities: The Goal - Exit The Fossil Fuels Era As Soon As Possible.
There are very heated debates on the CNBC, Bloomberg and in social media about Elon Musk's bold move to buy out SolarCity by Tesla. Number crunchers will point out to the SolarCity problems, family connections, conflicts of interests and "how many people would be better by buying Tesla Electric Car than Tesla's stock during the recent underwriting". Smarter short sellers can point out to the "disarray of the solar industry in general" after the collapse of the Sun Edison. Everything will work now - just to cover the Big Short. They all have a very little time left ... Elon Musk will spell it all out one more time at the Tesla Gigafactory "opening" in July.
Elon Musk has actually talked about it numerous times and this video from the last December in France represents the short answer. It is not about money, at least not in Wall Street sense: how much have we cut from our clients in the last Q? It is all about the vision and goal. Elon Musk sends the last warning to $12 Trillion Transportation and Energy Industries: join disruption or be disrupted. He is already ahead the curve explained so brilliantly by Tony Seba. He is changing the world. "The Goal - Exit The Fossil Fuels Era As Soon As Possible."
At his new level, money is of interest to Elon Musk only as a metrics to stay solvent and have enough fuel to propel his vision. In his lengthy letter to all stakeholders of Space X he has said it all - if he could choose he would stay private as long as he can with Tesla as well. And he should not really complain - Tesla has its recent financing for "Model 3 expansion" on the fly.
Elon Musk's real value is his ability to move very fast using the advanced technology is giving him to fill the market's void. 400,000 reservations of Tesla Model 3 in a month have demonstrated that people are ready to buy the best electric cars at the right price. They are ready for the Solar power at the right price as well.
Technology is driving us very fast to those right prices. The map from Solar City above is showing the space we need to power all USA with existing Solar Power generation technology today. Fast falling prices for lithium batteries make Electric Cars and Solar power possible. UBS has recent finally killed Hydrogen Myth and Fool Cells for transportation in its report - pure battery electric cars will be the future. Boston Consulting Group at the same Benchmark Battery Supply Conference in London was talking about Solar in Germany. For 40% households, it makes more sense to buy Solar and Energy Storage together already! The return on the capital is higher. Elon Musk is using the market opportunity to pick up Solar City at the distressed level of valuation and bring it into the Tesla family creating the 21st Century Energy Business. We are talking here about Energy Generation and Storage business disrupting $12 trillion industries. Some of this storage will be on wheels, some at your house, some at utility scale - Elon Musk goes to the 1st level of physics: electricity is the most efficient form of energy known to us. Now we can produce Solar power cheaper and we can store it and use when we can.
$5.3 Trillion dollars subsidies for fossil fuels worldwide according to the IMF is the void to be filled once you become competitive on price. Electric Cars with Tesla Model 3 and Gigafactory are moving there and Solar is getting there as well. So if Elon Musk will take 20% of this subsidised sector can we talk about Tesla as $1 Trillion market cap company one day? I do not know, but it looks that Elon Musk can get there much faster than Apple now. My cry to Apple was for years to Buy Tesla and now to partner up with Elon Musk and start building dozens of Gigafactories all over the world to bring us Holy Grail for the mass market for electric cars $100 per kWh of lithium battery in your new EV. Then my 20/200 formula will finish Fossil Fuels: when $20k buys you EV with better performance than BMW 2 type car with 200 miles range. Holy Grail means that battery will cost only $5k in that car. The rest Foxconn knows how to do with Tesla. Will it ever happen? The question is only when now.
Please do not get me wrong and read my disclaimer - I am not talking about any shares, business valuations and other small things along this road. We are talking here about the World just before the INTERNET. This is Energy rEVolution. Lithium Technology and the magic metal Lithium are at the very heart of it. Why Lithium and why I am personally investing in "Sugar" for all that "Warren Buffett's' Coca-Cola" business above are on the links below. Read more."
Lithium Race Moves Into Ludicrous Mode: Elon Musk - Tesla Will Build 1 Million Electric Cars A Year By 2020.
Now we can talk about the mass market for electric cars for real! Despite all naysayers and enormous challenges Elon Musk accelerates our lithium race into the ludicrous mode. Not only Tesla Model 3 will get this "Ludicrous Mode" option as well, but Tesla production estimates are now moved into that area. Elon Musk is talking about reaching 500,000 electric cars a year two years earlier now in 2018 and mind-boggling production rate increase for Tesla to 1,000,000 electric cars a year in 2020!
In order to comprehend the magnitude of this very complex manufacturing operation you have to check the production rate this year: in 2016 Tesla is aiming to deliver ... 80,000 to 90,000 EVs. Financial pundits are rushing to explain already how it cannot be done on time and that Tesla will need capital and short sellers are announcing their positions. Elon Musk response is a sleeping bag next to production line to check the quality of Tesla model X on-line. Life will never be easy for those who are making things to happen. Pundits will be pundits - they will continue to talk, Elon Musk will be Elon Musk - a billionaire with the sustainable vision for this world to move forward and he will continue to make unbelievable and disrupt $12 Trillion Industry of Energy and Transportation.
And now he is not alone, in order to move really fast we need millions of electric cars being produced by 2020. Who will make them? Will Apple try at least to buy Tesla and put Elon Musk in charge of Energy rEVolution as its CEO? In combination with Foxconn's lithium batteries Megafactory, $800 million EV production plant being built in China and manufacturing base to produce millions of iPhones and iPads it could be a short cut to EV domination. Can BYD with warren Buffett on board strike a strategic alliance with Tesla? BYD is building a few lithium batteries Megafactories in China and Brazil. It is now the largest EV producer in China. Can Germans finally to wake up, that they do not have any real electric cars to show and do something with Elon Musk?
We can be sure only of two things here and now. First is that Elon Musk is "super smart" and he can see what we are talking about much better, his answer will surprise again and exceed all our expectations. And second, please take the latest Lithium Demand projections from everybody and throw them out in the window. We are moving from talking to walking - electric cars are still below 1% of auto sales worldwide.
Now you can check the lithium price chart. It is not the matter of price anymore - availability of lithium supply is crucial now. It is important that it will be enough. When everybody and their grandma will be moving into Coca-Cola business, sugar becomes priceless. Lithium is the magic metal at the heart of this rEVolution and will power our sweet dreams. It is all easy in the end: just take the best people in the industry, 7 years of sweat and tears and you can see some recognition in the market. Next wave in our Lithium development industry will be the separation of the dreams and the real people with the dreams making real solid projects to work. Please remember, a lot of people will be talking, others were already long time walking. The development of lithium brine operations takes minimum 5 years and hard rock lithium mining makes people happy with 7-8 years full cycle from the discovery. International Lithium is moving its projects on 3 continents now with the best partners in the industry and Elon Musk helps us with his advice: Read more."
"This is our goal and we will be working hard to achieve it." Tesla Motors.
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