Predicting the Future?
Well, in a Small but Consequential Way…YES!
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For decades, my philosophy has been that if I invest in the future, then when it arrives, I’m already there! No need to play catch-up.
Okay, I’ll admit I’m not Nostradamus. But I do look into the future insofar as I follow trends and movements to imagine where they might go. This has always given me a better idea of where to put my money so I’m prepared. With that in mind, years ago, I saw an enormous opportunity to follow Tesla CEO Elon Musk. And that has really paid off for me.
From 3,000 to 3,000,000!
Tesla reached three million cars produced just before their recent annual stockholder’s meeting. Musk said that Tesla had only produced 3,000 cars a decade ago, adding that the electric-vehicle maker is striving to sell 20 million vehicles annually by 2030, with each factory outputting between one and a half and two million units per year.
To achieve this, Tesla would need to build at least three to five new Gigafactories, in addition to the one Musk says the automaker could announce this year. That news comes fairly quickly after Tesla made Giga Texas and Giga Berlin fully operational this year. Musk also thinks Tesla could eventually build as many as 10-12 Gigafactories throughout the world.
Global Footprint
Tesla continues to rapidly expand throughout the world, and despite two new Gigafactories having opened earlier this year, the automaker’s already looking at where to build next. Currently, Tesla has U.S. Gigafactories in Fremont, California, Sparks, Nevada, Buffalo, New York, Austin, Texas, and others outside the U.S. in China and Germany.
In the long term, it’s impossible to know just how many production facilities Tesla could build, but, as usual, Musk has set his bar high.
Image Credit: Tesla
Austin, Texas
The automaker's new Austin, Texas plant is a $1.1 billion facility that will expand electric vehicle production and serve as a launching pad for future products like the highly anticipated Cybertruck pickup, as well as a humanoid robot, Optimus (more on that in another blog).
Image Credit: Tesla
Berlin, Germany
Tesla is currently ramping up production at their new Gigafactory in Berlin from 1,000 vehicles per week to a goal of 5,000 vehicles per week by the end of the year.
To support further expansion of the capacity, Tesla is planning to add constructions on 100 more hectares to build a freight depot, train station, training center, and a kindergarten, as well as more logistics areas to support production.
Image Credit: Tesla
Shanghai, China
To meet growing demand for its cars, both in China and export markets, Tesla recently upgraded the Shanghai factory to a production capacity of 21,000 electric vehicles per week. That gives Tesla the capacity to produce up to 2 million cars per year at the company's main export hub.
Financial Growth = Physical Growth = Financial Growth
Tesla, whose stock price has roughly tripled in the past two years, is planning a 3-for-1 stock split, the second in about two years, that is designed to make ownership more accessible to employees and individual investors. The move wouldn’t affect the company’s market value, which recently topped $960 billion.
Compared to legacy automakers, Musk says that Tesla’s manufacturing has a "long-term sustainable advantage" over rivals as the EV industry begins to emerge. Whether Tesla can reach their goal of 10-12 Gigafactories is yet to be seen, but if growth in the last few years is any evidence, it’s not entirely out of the question.
Remember, the market can be highly volatile, and nearly everyone who has succeeded has done so by slow growth over the long term. As I mentioned, I’m not a prophet, but from where I’m standing, green energy investments and companies run by smart, ambitious people will, in the long run, serve you in good stead.