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Tesla Turns Hyper-Niche for Investors

Musk Shares the Secret to His Fortune

Written by Keith Kohl
Posted March 11, 2016

Apple is one of the best scams I've ever seen...

The company makes some of the most exclusive, hard-to-hack devices in the world.

But they're not compatible with anything else — the screens shatter the first time you drop them, you always need a bowl of rice handy in case of an emergency... and don't get me started on the ever-breaking chargers.

Yet even despite these problems, Apple's devices are still popular.

Why?

They're always the next big thing.

Everyone wants to have the shiniest, newest toy to play with. Apple provides that with every new iPhone.

And the latest news is that it's cutting ties with headphone jacks: wireless headphones only, please.

It's not revolutionary... but the media feasts on it is all over the news.

Because Apple is so good at making itself sound like a niche.

There's a lot to be said for playing off of niche markets...

Not New, But Nifty

If you had invested in Apple in its first few years on the market, you could literally be rolling in cash right now. I wouldn't suggest that, but you could.

Now the value's just too high for that kind of growth. But there are always new opportunities...

We're seeing a lot of the same potential in Tesla Motors. The company is always working to improve its technology through innovation.

And like Apple's new phones, Tesla is building onto an established market...

You see, electric cars aren't a new idea. But long ranges, connectivity, and fancy doors make Tesla's cars look like nothing the world has seen before.

And we've spoken at length about the effect this is having on the car market at large...

But Tesla still has a long way to go before it can truly live up to the title of “disruptive.”

For sure, the company's progress has been impressive. There hasn't been a successful new car company in America since 1925 when Chrysler entered the scene...

But even with the increase in deliveries over the past year, Tesla's cars still only account for about 0.5% of the market.

That means it's not just a niche.

No, it's more than that — it's a hyper-niche market.

Hyper-Niche Profits

I don't mean to suggest that Tesla has no sway in the market.

The number of “Tesla competitors” appearing all the time can attest to that. Some of them are even established car makers.

What's most important about Tesla's numbers isn't how high they are, but that they exist at all.

Tesla car owners — and its stock holders — are loyal to the brand the same way Apple fans are. They buy into the niche because they want the shiniest toy.

What's more, Tesla's cars thus far are part of a lucrative niche... luxury cars.

So even if the company hasn't hit the mainstream yet, it's still pretty damn valuable.

Of course, making electric vehicles mainstream has been the goal all along...

Elon Musk spelled it all out in an early Tesla Motors website post:

So, in short, the master plan is:

Build sports car.

Use that money to build an affordable car.

Use that money to build an even more affordable car.

While doing above, also provide zero emissions electric power generation options.

"Don't tell anyone."

I appreciate that bit of irony at the end.

I appreciate even more the huge opportunity this hyper-niche is building for me and my readers...

Playing the Niche... Smartly

Now, even though Tesla has a lot of room to grow, I'm not saying you ought to invest in it.

It could take quite a while for the company to become a reliable mainstream investment.

Instead, I'm interested in picking up shares that I know are already paying off... and will continue to for a long time.

Of course I'm talking about lithium. It's necessary for any number of rechargeable devices now, and there's no slack ahead for demand growth.

Tesla may be driving the lithium story now, but it won't be the last word on the matter.

It's not new. It's not even a niche, but it's incredibly profitable for early investors.

Until next time,

Keith Kohl Signature

Keith Kohl

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A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing's Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

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