Your New Favorite Tesla Stock

Keith Kohl

Written By Keith Kohl

Posted August 16, 2017

You wake up one day to news that Tesla is going to build its mammoth Gigafactory 1 in the Nevada desert.

“No, now isn’t the time to get bullish,” you mutter under your breath. “This is years away… plenty of time still.”

Meanwhile, your neighbor brags about owning a piece of Tesla.

He bought when shares were trading for a mere $37 each.

You wake up on another fine day a few years later and read about its grand opening.

“Surely this isn’t the time to get on board,” you tell yourself in the mirror, hoping beyond hope that the lithium revolution is just another fad.

A few days later, your neighbor’s Tesla shares are worth $212.01 apiece.

Then one day you’re pouring your morning coffee, reading the day’s headlines, and you learn that Elon Musk isn’t going to build two or three more of these massive battery factories — he’s probably going to build four!

Regret starts to creep inside you.

When you’re back in front of the mirror, you shrug it off, convincing yourself that nobody could have possibly seen this coming…

Then you learn that not only is Elon Musk building his second Gigafactory in Buffalo (I silently pray he keeps Scott Norwood off of the production floor), but he’s currently zeroing in on locations for a fourth, fifth… and sixth Gigafactory!

In Tesla’s latest earnings call, Musk was clear that the next logical step is to construct Gigafactories in both China and Europe.

On your way to get the mail, your neighbor gives you a smile wrought from smugness.

Just one of his Tesla shares trades for nearly $365.

Now your depression sets in as a sinking feeling hits your stomach.

I missed the boat.

But I do have some good news for you… you haven’t even come close to missing out.

Musk’s Crisis of Conscience

Forget buying Tesla.

No other stock has been more dramatically hyped (whether the hype is justified or not is a different conversation) than Tesla.

My veteran readers should already know where I’m headed with this.

You see, Musk made one possibly catastrophic blunder.

And you, dear reader, are going to see history repeat itself… almost.

You see, the head honcho over at Tesla was firm that he would source his materials locally.

The problem is that a tiny collective of four major lithium companies controls an overwhelming amount of global supply.

They even set their own prices; rather convenient, isn’t it?

As progress continued on the construction of the Gigafactory, there was a sudden rush to secure lithium supplies.

In August of 2015, Tesla inked its first deal to buy lithium from Bacanora and Rare Earth Minerals.

And it was this promise to get its lithium sources close to home that sparked a lithium rush in Nevada.

Anyone with an acre of land near the Silver Peak Mine (currently the only active lithium mine in the U.S.) immediately started developing new lithium projects.

Today, there are dozens of junior miners racing to capitalize on demand from the Gigafactory.

Now, even though the market didn’t catch onto Musk’s blunder at first, investors are slowly starting to see the real picture.

A year from now, it will be a full-blown crisis for Tesla

Although the lithium story is still the darling of the mainstream media, I want you to take a step back and look at Musk’s crisis of confidence.

And it has nothing to do with lithium.

I told you before that there is no Tesla without one decisive metal.

I am, of course, referring to cobalt.

Behind the closed-door meetings at Tesla, I can only imagine the panic settling in over the company’s cobalt supply.

Cobalt is an undeniable nightmare for Tesla’s PR department.

Because image is everything… especially if you’re burning through cash at the speed of light.

So when media headlines are flooded with heart-wrenching stories of 40,000 children toiling for 24 hours a day in the bloodstained cobalt mines in the Democratic Republic of the Congo (DRC), it’ll be interesting to see if the public turns on Musk.

It’s going to be an even greater priority for Tesla in the coming months and years.

And we’re already seeing cobalt prices spike:


Here’s the catch…

Finding that conflict-free cobalt is virtually impossible.

Remember, the DRC supplies 60% of the world’s cobalt right now.

Just imagine how valuable having a cobalt mine here in the United States would be for Elon Musk.

Oddly, I don’t think he’s sweating as much as we think.

Soon, he’s going to have an ace up his sleeve that’ll help alleviate this burden.

When you wake up tomorrow, you’ll have the chance to beat the investment herd to the punch when I show you exactly where his hidden cobalt project is located.

It’s a tiny cobalt player that’s trading 283x less than your neighbor’s grossly overpriced Tesla position.

Stay tuned.

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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