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Musk Hits the Next Level

Is Tesla Obsolete?

Written by Keith Kohl
Posted March 1, 2016

Tesla has some new competition.

What else is new, right?

But for once, Elon Musk's competitor isn't going after his Model S.

Instead, the newly Kickstarter-funded Orison battery is taking on his home battery system: the Powerwall.

As energy storage technology spreads worldwide, more designs and products will start coming to market.

But is this one even big enough to make Tesla worry?

The Better Battery

Granted, both battery packs have their ups and downs.

Size and installation are always big concerns. Tesla's wall-mounted Powerwall can be installed by specialists either inside or outside the house.

Orison has two options, however: Take your pick between a wall-mounted panel and a round tower. Simply plug one of them into any outlet, and you're ready to go. One is regarded as sleek and stylish, the other touts a powerhouse of features.

And one could become a mainstay in your home.

But let's back up for a moment...

You see, the success of Musk's energy revolution has been — and will be — driven by just one critical market.

More important is that this situation will be more than just an interesting headline... it'll become downright profitable for you.

Not only is Musk's secret supply no longer an obscure commodity, but it's one of the few markets still in a strong uptrend that'll inevitably continue.

Truth is, the Powerwall sector alone is going to drive demand for it through the roof within a few short years.

And there's only one thing left to do...

Time to Buy the Lithium Gold Rush

Look, I may worry a little about the effects these products will have on our energy grids as they roll out. The fact that they're rolling out at all is what matters.

You see, more demand for large-scale batteries like this will do wonders for our booming Metal Oil.

Electric cars may be the talk of the town, but you can't discount the importance of home energy storage, either.

According to IHS, global energy storage capacity was about 0.34 gigawatts (GW) between 2012 and 2013. It's expected grow to 6 GW by the end of 2017, then on to 40 GW by 2022.

That's more than 500% growth in just five years!

And those batteries are going to need a lot of lithium.

It's not as if lithium isn't already a part of our daily lives. Nearly 95% of the batteries used in electronic devices are lithium-based.

Think about the immensity of that for a moment.

Moreover, almost three-quarters of lithium consumption in batteries is in portable and rechargeable devices.

Very soon, we're going to have Tesla's Gigafactory enter the fray, which will be churning out half a million cars per year by 2020!

I don't mean to harp on the subject (it's kind of hard not to), but the potential here to corner the supply side of Elon Musk's lithium gold rush is nothing short of ridiculous.

He knows it. I know it. And you need to realize it... and soon.

You can see a glimpse of his plan every so often in the media headlines. You might have caught on last summer, when Musk made his first move to shore up the necessary lithium supply to keep his Gigafactory running smoothly. It was with London-based Bacanora Minerals and Rare Earth Minerals.

A few months later, however, Elon inked a supply deal with a tiny lithium company in Nevada, located just miles away from where he broke ground for the first Gigafactory.

If there's one thing I'm sure of, it's that he isn't finished — not by a long shot!

In fact, I think he's just getting started, and now the cat is out of the bag that Nevada is where he's looking for more lithium.

Until next time,

Keith Kohl Signature

Keith Kohl

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A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.

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