Journal Entries.. (Tag: investing)

The future of energy, internet service, and autos.

" Tesla surpases GM as the #1 American auto stock. " 


1. Tesla is going to be a national energy company and global internet service provider within the next 5 years.
2. Tesla will also be a real player in the Defense Industry in less than 10 years.

** STILL IN PROGRESS ** Did not edit properly **


I've been a supporter of Tesla since Elon Musk announced his goal to establish clean/fuel efficient cars and clean energy. All while being proactive with his goal trying to keep this thing we call our planet alive or at least extend it's life for another 200 years.


If you do any real research on the climate you will see the current conditions (now) have exceeded the worse case scenarios from the 1980's, the 1990's, and the most recent projections. The actual projections put us over "the red line" which is considered a worldwide disaster. You only need to look as far as Greenland. Greenland is basically one giant glacier. Glaciers typically move at slow speeds and they also hold massive amounts of water. The Greenland glacier is 2 miles thick in the middle at the most dense point. Unfortunately glacial lakes are being creating at a much much higher pace due to "dirty ice". This dark colored ice comes from excess carbon in the atmosphere. The ice gets a dark color to it and absorbs more heat from the sun thus creating sapphire blue lakes. Once they reach a few miles in size the burst and rivers run off. These rivers travel for quite a distance connecting with other streams and rivers from other glacial lakes. Then all of a sudden they fall, usually over 1 mile directly downward. Where does all of this water go? It acts like a lubricant to move the glacier faster. Right now the galcer is moving over 40 meters per day and the thickness is shrinking about 20 feet per year. These numbers are staggering. When the glacier moves eventually it comes to the ocean and "pieces" fall off. The massive size of the icebergs they create are measured in miles. This cold fresh water which melts from the glaciers effects our current weather patterns. If the entire ice sheet on the island of Greenland melted the ocean would be raised 20 feet. But that's just the tip of the iceberg. Pun is intended. Twenty feet would mean every coastal city would be gone. This is inevitable. What we are now trying to stop the the antarctic ice melt. Antarctica holds 70% of the world's fresh water and if it melted the sea would rise 200 feet. Life wouldn't be able to adjust to this kind of change. Denver would be ok.


Why did I talk about big glaciers and ice sheets before i begin to talk about profits and a company I like. A company I think will be my generation's GE. Well unlike past companies Elon Musk started his career in South Africa (where he was born) coding. He coded his first game at the age of 12, it was called "Blastar" and he sold it. Eventually Elon moved to Canada for schooling. His self taught programming did not stop however. He started another venture this time something called Zip2. It was a utility to compress files (make them much smaller). This made him a millionaire. Even though this technology sold for $300 million Elon received around $22 million dollars. Shortly after this venture he started This was suppose to be a financial services and email payment company. Elon put $10 Million of his own money into this venture and eventually merged with another company but maintained primary ownership. This company he merged with was called Confinity and they had a money service called PayPal. Elon liked it renamed it PayPal and it became what it is today. He sold this to eBay for $1.5 billion he received about 300 million and still held around 11% of the stock.


This is when Elon decided he had the means to do what he really wanted to. In 2001 he traveled to Moscow, Russia to look at inter continental ballistic missiles. These were for his next venture "SpaceX". This company is still privately held. He was laughed out of the room when he traveled to Russia the first time so he went again but the next time he hired the top name from NASA's CIA venture capital arm. This time they took him very serious. However Elon demanded a lower price, and when the Russians wouldn't budge he left. On the way back to America he told the man he hired it would be cheaper to make his own rockets. And he was right.


Let's fast forward to today May 28, 2017. Tesla is the biggest "American Auto Company", but they don't just sell cars. While Tesla makes the best, top of the line electric cars in the world this is not the primary reason why their stock price is so high. As a matter of fact one of Elon's assistants was quoted saying Elon had a massive fit at their facility in California where they build the automobiles. Even though the facility has 4,500 parking spaces, they have about 6000 employees not including inventory. He needed more parking! I am only mentioning this because I know a few people who own quite a large amount of stock and I give tech tips every now and again. When I bring up Tesla the first thing people say is I don't see people driving Tesla's everywhere. But that's not the point. Tesla is a much bigger company than just cars. As a matter of fact I would put the auto sector number 3 on the list, putting energy and internet above them.


Tesla has what's called the "Powerwall". It's a battery about 3 feet tall by 1.5 feet wide. Picture a large backpack. These batteries are currently being installed in California and Nevada using solar panels. Tesla's crews are out 24/7 installing them. They turn your home into its own utility company. Alot more people would have been installing them if the solar panels were in shingle form. Tesla unveiled their new shingle product about 2 weeks ago. They have a lifetime warranty and come in any look you want, wether thats slate, tuscan, or regular fiberglass shingle. you can see the shingles here. This is a game changer. I can imagine more companies will produce these kinds of products and price will go down so in time everyone will have this. And remember what do ALL of these things have in common? They are all clean renewable energy products.


Next I am going to talk about the facts then something I believe is going to happen. First Tesla is already projected to make 30 Billion within the next 3 years internet revenue. This means all of those satellites SpaceX has been putting in orbit will be utilized by Tesla, and not just for GPS in the autos, but also for high speed internet for users across the globe. This is something no other company has access to. Apple announced last year they were not in the auto business. Saying they were going to leave the professionals to do what they do best (making cars) and we will do what we do best (technology). Apple already has the best self driving car technology. But who is going to use it? I believe if Apple bought or merged with Tesla they would be the most important consumer / corporate company for generations. They have all of the technology to build a giant network to build out the ISP Tesla would need and they also have a ton of cash on hand. Apple has also hired the 2 best people in the satellite field a few months ago. Why would they do that unless they are working on satellite technology right now?

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5/28/17 @ 12:30PM EST -- incomplete -- have to go leave -- need to proof read and finish. -- Need to add dozens of refrecences.

By Brent Joyce