Last week, Tesla confirmed that co-founder and CEO Elon Musk had sold over $5 BILLION worth of Tesla stock.
Nutjob-in-chief Musk tried to play it off as him getting some cash together to pay the tax man. But are we really supposed to believe he’s going to pay $5 billion in taxes this year?
In the famous words of Sleepy Joe Biden, “C’mon, man!”
We’re not as dumb as Elon Musk obviously thinks we are. We know that the real reason he sold that stock is because Tesla had just hit an all-time high.
And Elon knows better than anyone else just how incredibly overvalued his company is…
A Trillion Dollars? Really!?
Tesla is worth more than a trillion dollars. That makes it worth more than Ford, GM, and Volkswagen COMBINED.
Those three companies have a combined market cap of about $307 billion. Ford sells about 4 million vehicles a year. GM sells about 7 million. And VW sells about 6 million.
Tesla in its best year ever sold just under 500,000. That’s laughable.
Yet it’s worth more than twice as much as those three companies that actually sell a respectable number of cars? Really!?
Elon Musk is nowhere as smart as everyone gives him credit for being. But he’s not stupid enough to pass up a deal like that.
His company is pretty much dead in the water now. VW is the biggest manufacturer of electric vehicles in the world. Ford makes the most popular EV. Tesla’s just clinging desperately to the title of “first to market.”
So Elon is selling while the stock is high. He’s getting out before the investors who pushed an unprofitable company into the stratosphere realize their mistake and head en masse for the exits.
I can’t say I blame him. If I owned any Tesla stock, I’d be unloading it too. There are just far too many headwinds coming in the near future.
I could rattle off at least 10 without thinking too hard, but in consideration of your time and my space, I’m going to cover the three strongest today (and give you ways to profit from them)…
Headwind #1 — Electric Glass
You know Tesla has a problem with its cars exploding right? Well, if you didn’t, now you do.
But it’s not a defect in the car itself. It’s a flaw in the way batteries for EVs are designed. They’re literally made to blow up eventually.
And the only solution the manufacturers have come up with is “don’t fully charge them.”
I’m not even kidding. That’s the warning you get on your EV when you buy it: Fully charging these batteries may lead to death and dismemberment.
And not only are those batteries just plain unsafe, they’re not that great either…
They lose their charge after a short trip. They take hours (sometimes even days) to recharge.
They’re heavy. They’re expensive (as much as $12,000 to replace). And they only last a few years before they need to be replaced.
Tesla is never going to sell more than half a million cars a year if nobody wants to buy them because the batteries are trash.
And Elon Musk knows this. That’s why he’s dumping his shares of Tesla.
He also knows there’s a small, little-known company that’s come up with a new battery technology that will completely solve all those problems.
But he also knows that company is not Tesla company. And he can see that this company and the manufacturers using its technology are going to put a serious hurting on his stock.
He’s not the only billionaire paying attention, either. Bill Gates helped fund this company when it was just a startup.
And as much as Elon might love to have these new batteries in his cars, Volkswagen already beat him to the punch. It’s going to have the batteries of the future. Not Tesla.
I’ve prepared a full presentation about the company, its technology, its powerful backers, and how you can get in on the ground floor.
Once you watch it, you’ll get access to a 100%-free report explaining exactly how to get invested today.
But that’s not all I’ve got for you today. And that’s far from the only headwind pushing Elon Musk to dump his Tesla stock.
Headwind #2 — Green Fuel
Batteries may be the holy grail for electric vehicles, but electric vehicles are only one of many environmentally friendly forms of transportation.
And no, I’m not talking about sailboats here, although I do love a good day of sailing.
I’m talking about completely new forms of fuel we’ve never even thought of using to power our cars.
Fuels that have nothing to do with oil or coal, nuclear, or even hydrogen power.
Vehicles powered by these fuels can drive farther, last longer, produce more power, and are just generally better than vehicles powered by batteries and electric motors.
And those vehicles are going to put a massive dent into the sales of EVs. So it’s no wonder Elon is selling out of a company that ONLY makes EVs.
And it’s no wonder that the smart money isn’t buying those Tesla shares. It’s scooping up chunks of the companies perfecting these new fuels.
And so am I, thanks to a tip I got from my colleague Alex Koyfman…
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You see, Alex spends his life immersed in the microcap side of the stock market. And that means he’s privy to the ins and outs of tiny companies most of us have never even heard of before.
But it’s those tiny companies that are working to develop the next technological breakthroughs.
The only reason they’re tiny is because they’re still getting there and haven’t completely disrupted the market yet.
These are the companies that grow into stocks like Tesla 10 years down the line.
One of them has achieved what many thought was impossible. And I’ve seen the patent that proves it.
This company’s developed a completely carbon-neutral fuel source for any vehicle from a go-kart to a massive earth-mover.
But it’s still trading for mere pennies because the rest of the market hasn’t caught on and nobody is paying attention.
That’s all going to change very soon, though. And when it does, investors are going to dump those EV stocks like Tesla and pile into stocks like this one.
Elon knows. That’s why he’s getting out while the getting is still good.
Now you know too.
Headwind #3 — Blue Gas
And there’s another company developing new ways to power vehicles across the globe. Again, this has nothing to do with batteries, but it’s still good for the planet.
And what’s more is that this company already has its power sources in hundreds of thousands of vehicles around the world… just not the kind of vehicles you might think.
You see, this company’s been helping power the forklifts and loaders sorting through our nation’s warehouses and distribution centers for decades.
That’s a place where gas-powered vehicles went out of favor really fast. It makes sense. If you’re in a closed building you probably don’t want a lot of exhaust building up.
So those machines have needed a new form of power for a long time. And this company provided it.
Thanks to its technology, warehouse owners didn’t need a whole new fleet of electric lifts. They just needed to retrofit their existing fleet so it could use this power source instead.
And that’s what’s so cool about this company. You don’t need completely new equipment. You can make it so your old stuff works with its new technology.
Sounds a lot cheaper than scrapping a perfectly good car so you can go buy a brand-new one.
And that’s why this company has been ripping up the charts for several years.
My colleague Jimmy Mengel is so impressed that he recently put together a full presentation on the company, it’s technology, and the incredible opportunity it presents for early investors.
After viewing the presentation, you’ll have the chance to snag a 100%-free report with all the information you need to get invested today.
Keep an Eye on Elon
And as the days turn into weeks and those into months, keep a wary eye on Tesla’s CEO/hype man. I’ve got a feeling in my gut that this $5 billion sale is just the tip of the iceberg.
Elon Musk knows that his billionaire status is at risk if the market realizes the stupidity of valuing Tesla at a trillion dollars.
And he’s cashing out his chips at the top of the chart before the bloodletting really gets going.
If you’re holding Tesla shares, it might be a good time to reconsider how you feel about the company’s future sales compared with its current valuation.
And when those future sales by Musk get cooking, keep an eye on the companies I shared with you today. While Tesla drops, they’re likely going to soar.
So take some time today to get the information and get invested.
Then you can be the person selling a $5 billion stake instead of the person reading about it.
To your wealth,
Jason Williams
After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.
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