Amber’s Macro Monday — What Tesla’s Trajectory Means for the EV Market

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I’ll never forget my first ride in the Tesla Model 3.

It took my brain a few seconds to process the jaw-dropping experience.

I knew in that moment that Tesla would be a powerhouse company that would completely disrupt the automotive market.

And it’s clear to me now that I was not alone.

Tesla’s new numbers are in … and the results will not disappoint.

In my Fab 5 charts this month, I’ll show you why new innovations in Tesla, battery-storage tech and clean energy are laying the foundation for a Fourth Industrial Revolution.

Watch above to see the top economic charts for:

• The exciting new Tesla innovations that are pushing up sales and leaving other luxury cars in the dust. (1:34-3:28)
• Clean energy initiatives that are creating a new renewable energy boom that is disrupting the fossil fuel industry’s hold on global power. (3:29-5:02)
• A new survey that reveals what the world’s wealthiest investors have to say about their expectations for the stock market in 2020. (5:03-5:58)

Macro Monday January 27, 2020

This edition of Macro Monday will be an America 2.0 focused special edition.

As you may know, Paul Mampilly and Bold Profits mega trends will spur the new renaissance and 4^th industrial revolution of America 2.0, these mega trends are:

• Industrial internet of things
• Precision medicine
• Millennials
• Blockchain
• Robotics
• Artificial intelligence
• Autonomous/electric vehicles
• New energy technology

In this week’s update, we’re going to focus on autonomous/electric vehicles, new energy technology and then conclude with 2 compelling market sentiment trends.

E.V. Sales

I’ll never forget my first ride as a passenger in the Tesla Model 3.  It took my brain a few seconds to process what I was seeing and experiencing and then my jaw dropped.

I’m a long-time car enthusiast a.k.a gearhead, so I’ve seen my share of cars and test drives, but the inside of the model 3 is unlike any car I had seen before with no instrument gauge panel in front of the steering column, but instead a large 15-inch touch screen display command center to control the vehicle.

And then we hopped on the interstate and the driver accelerated effortlessly and soundlessly and put the car on autopilot and I was blown away.

Well, apparently, I’m not alone in this admiration.

According to inside EVs and as this chart shows, the Tesla Model 3 is proving its popularity.

Tesla Model 3 Sales are Blowing Away Rivals in the Luxury Sedan Segment.

After its introduction in 2017 Model 3 yearly sales have been on an upward trajectory catapulting past sedan competitors like the BMW 3 series, Audi A4 and Mercedes c-class.  I have a question, if you own or have driven or ridden in a tesla model 3, S, or X please let me know your experience!

You can share it in the comments section below.

So far, I’ve test-driven all 3 and my favorite was the Tesla Model S P100D in ludicrous mode when I accelerated the vehicle from 0-60 in about 2.4 seconds.

It was super-fast and shocking.

Just like the passengers’ reactions seen in this YT video from Forrest’s Auto Reviews.

All I can say it was a heart-pounding, Wow moment.

Per Bloomberg “New Jersey just became the 10th state to introduce an incentive for the purchase of an EVs, which, once implemented, will be the highest offered in the U.S. The new policy in New Jersey is only available to consumers purchasing EVs priced under $55,000. The 10 states in this chart accounted for over 65% of EV sales in the first half of 2019, according to BloombergNEF.”  [1]

This 2 part chart shows how Global new investment in clean energy reached $363.3 billion in 2019, the second-highest on record, bringing the total for the decade to $3.3 trillion, according to BloombergNEF’s investment trends report.

About 75% of the total went to the wind ($138B) and solar($131B).

On the heels of these booming stats there’s a New Energy Alert: Per Bloomberg, Solar and wind power installations are forecast to “Shatter U.S. Records in 2020.”

Per the U.S. Energy Information Administration. Both new energy sources are “forecast to smash…records in 2020. Wind installations are booming…while a new CA mandate requiring panels on most new homes is helping solar.”

According to the recent UBS Global Wealth Management Survey, the world’s wealthiest investors are nearly unanimously optimistic where the stock market is concerned for 2020.

The survey – which asks 4,800 wealthy individuals from around the world with a net worth of at least $1 million or $250,000 in yearly revenue, and at least one employee other than themselves – gauges their investors’ forward-looking sentiment.

A chart-topping 94% of surveyed wealthy investors around the world anticipate positive returns this year.

This is a turnaround from the October survey where more than 50% of respondents expected a significant market sell-off by the end of 2020.

Per the UBS press release, Paula Polito, Divisional Vice Chairman, UBS Global Wealth Management, says: “Virtually all investors reported positive portfolio returns in 2019, with continued high expectations for 2020.”

And per Bloomberg’s assessment about a quarter of survey respondents’ assets were in “cash, slightly lower than the previous report.”

More money is flowing into equities in the new year, with data from EPFR Global and Bank of America Corp. showing about $20.5 billion of inflows into stock funds.

That’s partially reversing last year’s outflows, which reached about $167 billion, as many market participants remained cautious and turned to bonds or cash despite the equity market rally.”

In all, Bloomberg also notes that the rather low stake in stocks foretells more room for gains according to strategists at Goldman Sachs.

Financial Advisor and Bloomberg bets on disruption are swelling thematic funds.

Thematic funds are stock mutual funds that invest in stocks tied to themes and both news outlets are reporting that more money than ever is pouring into thematic funds that aim to predict future trends.

Per Bloomberg “as of the 2020s get underway, investors hunting for tomorrow’s winners based on today’s emerging trends command more cash than ever. Thematic funds doubled their assets in three years to reach $175.2B at the end of Dec., according to data from Morningstar Inc. Already there are signs that growth will continue this decade: Lazard Asset Management just started a new fund riding themes like digitization, environmental threats, societal anxieties and more.”

We urge our subscribers to learn more about our take on America 2.0 and the 4^th Industrial Revolution.

Before I sign off, if you like what you see here, please subscribe to the Paul Mampilly YouTube channel and follow us on Twitter (@MampillyGuru  and @ALancasterGuru).

And have you ever taken a Tesla joyride? Tell us all about it at boldprofits@banyanhill.com.

Until next time,

Amber Lancaster

Director of Investment Research, Banyan Hill Publishing

Sources:

[1] Bloomberg – Press Release Clean Energy