When Elon Musk laid out his plan to build an electric sports car that would generate money to help build an even cheaper electric car back in 2006. Nobody would have ever thought it would grow to be one of the largest companies ever, let alone the largest car manufacturing company by valuation. But obviously, Elon did.
This was the infamous Tesla’s master plan part one, followed by part two back in 2016, and now, the down-to-earth CEO has hinted at part three. In a recent Tesla company meeting, Elon said that Tesla’s new plan would focus on achieving large-scale improvements to help shift the world’s energy and transport infrastructure.
However, details about the plan are not yet out, but it hasn’t kept investors and the public from getting excited. This piece will look at the possible outcomes of Elon’s plans and the industries that might get affected. So if you’re ready to relook your investment portfolio, keep reading to learn more.
Is Elon Right When Planning Long-term Investments?
We will start by stating that if you know where you’re going, you’re more likely to get there. So yes, Elon is right when planning long-term investments for his company. In fact, that’s the only way to keep performing and delivering at the top level.
On the other hand, many investors ask themselves: What is the present value of my investment to be received in a few years? A good way to calculate this and have an idea is by using a present value calculator. However, even without the calculator, the actions of the company you’re invested in can tell you a lot about your investment’s future.
But don’t get us wrong. We don’t mean you head out and find the next CEO making grandiose claims about their company’s future and investing. But we are saying, at the least, to find an investment opportunity with some future possibilities.
Back to Elon and his third master plan for Tesla, he set an ambitious goal of 300 TWh of installed battery capacity in vehicles and stationary soon. This obviously means ramping up production of nickel and lithium in all stages of the production pipeline. Furthermore, he also said that Tesla getting into mining its own raw materials is on the books and might be a future possibility.
Industries to Look out for After Master Plan 3
With Giga Berlin and Texas up and running and more plants in the works, Tesla’s plans about scaling their battery production might have come sooner than later. As such, nickel and lithium mining, semiconductors, renewable energy, AI, petroleum, and the automotive industries are most likely to be affected.
For example, traditional car manufacturers are slowly phasing out combustion engines in favor of electric motors. This will negatively impact the petroleum industry while increasing pressure on sectors such as lithium and renewable energy production.
So if you’re looking for investment opportunities in the wake of the changes Elon and his companies are making. You now have a rough idea of where to look and avoid.
- Greener energy- electric cars are much more efficient than gas power once. Elon is also a leading voice in sustainable energy production.
- Cheaper electric cars- as more and more manufacturers enter the production scene, and production ramps up even higher. We are going to see better, more affordable electric vehicles.
- Better batteries- material sciences are refining battery compositions and increasing their capacity.
- Environmental destruction- mining is a dirty industry that pollutes and displaces indigenous people.
- Elon is the head of a few high-profile companies and might not have the vigor to see through his plans for all of them.
- Tesla faces stiff competition from the rest of the industry, and it would only take one mistake to miss the goal.
So when investing in any of the above industries, be fully aware of the risks you’re taking and ensure to have a plan.
Types of Financial Plans
1. Retirement Strategy
This is the strategy you implement to help you save for your retirement and how funds will be disbursed in your retirement.
2. Risk Management Plan
This outlines potential risks and ways to mitigate, deal or keep them at acceptable levels even before they occur.
3. Long-term Investment Plan
This is an investment plan that includes a long wait for the payoff. An investor has to wait for a few years, if not longer, to see their ROI.
4. Tax Reduction Strategy
They are also known as tax-loss harvesting, a strategy that allows you to sell investments to recover losses on paper, which the IRA does not follow.
5. Estate Plan
This is a plan one makes on how they wish their estate to be managed in the event they become incapacitated or pass.
There is no doubt about it. The future is going electric. And like Elon’s crazy idea about making a car to make a car came to fruition. Maybe even 300 TWh is not such a distant future. On the other hand, you and I have an opportunity to buy a ticket on this ride and maybe have it be worth more when we get to the other side.