Erwin Ilao's  Instablog

Erwin Ilao
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Based in San Francisco Bay Area. Founder of and creator of Dart Ops, a mall-based recreation center. An entrepreneur.
My company:
Ownlegacy Publishing Company
  • Tesla's Potential Supercharger Network : Hotels, Starbucks, Walmarts And McDonalds 0 comments
    May 30, 2013 8:35 AM | about stocks: TSLA, SCTY

    Elon Musk is set to announce the Supercharger Network he has been tweeting about for the last three weeks. In his formal announcement which shall be followed by a question and answer portion, Elon could announce the potential of having a network of established businesses cater to the recharging needs of its growing Model S owners. He might talk about Starbucks, Walmart, McDonald and other stores/establishments being tapped as co-partners in providing plug-ins for the J1772 charging adapter, capable of giving 62 miles of range in an hour of charge.

    Tesla's website already said it: "Anywhere"

    What this would mean is easily a network of thousands of locations where Tesla EVs will be welcome, thus intensifying the demand for the affordable mass-market vehicle type that is already in its pipeline.

    With Solar City as the certified and recognized installer of Tesla's charging equipment, Elon has poised himself to be the ingenious entrepreneur he is, considering that he also owns Solar City. If this is indeed a plausible speculative scenario, an investor would do himself good to buy Solar City's stocks before the announcement since its success is tied up to that of Tesla's.

    Many analysts have already expressed reservations about EVs and the Model S citing that battery technology is still years ahead before it could eventually capture mainstream affection. What they have not imagined is the future scenario where a Tesla car owner can easily charge-up, virtually anywhere there is coffee, fast food or hotel, and balk at the common man still stuck in gas stations. Surely this is easy to achieve and within the timeframe of less than a year to get completed.

    People confine the prospects of Tesla's Supercharger Networks to that of the gasoline stations, where a brick and mortar establishment would be needed. Such is the future that Tesla EVs need not replicate. With the capital it now has, much of it can be used in expanding production because demand will surely shoot up once this idea for a Supercharger Network is in place.

    With all these assumptions, one could speculate on the stocks of both Tesla and Solar City and get away with ignoring the fundamentals or rationalizing financial ratios because in a revolutionary market, fundamentals are not yet established.

    One is doomed to the present if he cannot imagine the future. Tesla has already proven it has the product, the money and the imagination to make things happen. So jump in and place your bets.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: I wrote this article myself and expresses my own opinions, predictions and speculations. I am not receiving compensation for it.

    Stocks: TSLA, SCTY
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