None of the three high-profile Hyperloop companies; Hyperloop One, Hyperloop Transportation Technologies (HTT) or Hardt Global Mobility is a realistic investment for average people. To make matters Elon Musk's SpaceX (which has a test track) is not publicly-traded.
So what is an everyday person who wants to invest in Hyperloop supposed to do? Simple invest in established publicly traded companies that might be in a position to benefit from Hyperloop. This way you can hedge your bets and make money whether or not the technology is successful.
Fortunately there are quite a few publicly-traded companies that might be in a good position to cash in on the commercialization of the Hyperloop. These companies are established ventures and many of them are making money and even paying a dividend right now.
Some Companies that Might be Poised to Cash in on Hyperloop Include:
· Boeing (NYSE: BA) - The aerospace company's expertise in building airliners and cargo planes can easily be applied to creating Hyperloop vehicles. Boeing already builds vehicles that move at a high speed through a low air pressure environment. That's what Hyperloop really is a low air pressure environment set down on the ground in the form of a long tube. Boeing rewarded shareholders with a return on equity of 336% on March 31, 2017 and a dividend of $1.42 on May 10, 2017.
· Airbus SE (OTC: OTCPK:EADSF) - The European aerospace giant is already working with HTT at a test track in its home town of Toulouse, France. Like Boeing, Airbus has a lot of experience building pressurized high-speed passenger vehicles (planes) that move through a low-pressure environment. Airbus shareholders enjoyed a return on equity of 20.89% on March 31, 2017.
· U.S., Mexican and Canadian railroads. If it works the Hyperloop will need a route and these companies own the routes and connections to ports, and industries. Publicly traded North American railway operators include: Union Pacific (NYSE: UNP), Canadian Pacific (NYSE: CP), CSX (NYSE: CSX), Kansas City Southern (NYSE: KSU), Norfolk Southern (NYSE: NSC) and the Canadian National Railway (NYSE: CNI). Since railways are a classic value investment, they are a good way for value investors to make a bet on Hyperloop.
· Berkshire Hathaway (NYSE: BRK.B) - Warren Buffett's company owns the Burlington Northern Santa Fe (BNSF) railway and a number of pipeline operators. It also experience in logistics through the McLane Company; and utilities in the Berkshire Hathaway Energy Company that might make money by selling electricity to Hyperloop.
· OC Oerlikon (OTC: OTCPK:OERLY) - The basis of the Hyperloop system is a tube from which much of the air is pumped out. Somebody will have to make the pumps and Oerlikon subsidiary Leybold Vacuum is a leader in the manufacture of industrial air pumps. It has been linked to both Hyperloop One and HTT in the past. Oerlikon has some experience with gigantic projects including the large hadron collider; the world's largest particle accelerator.
· UPS (NYSE: UPS) and FedEx (NYSE: FDX) - Hyperloop would make these companies far more profitable by greatly reducing their transportation costs. It would also enable them to offer new services such as same-day delivery across large areas of the United States. For example a packaged shipped from Chicago to New York in the morning might be delivered by midafternoon.
· Publicly-traded homebuilders like PulteGroup (NYSE: PHM) and Toll Brothers (NYSE: TOL). By greatly reducing commute time Hyperloop would open up a lot of new land for development. This would presumably increase the volume of new home sales and profits for homebuilders. A major opportunity will be lower-cost housing for the middle and working class families that have been priced out of major markets like New York, Los Angeles and San Francisco. This will occur as some outlying areas like Bakersfield; and much of upstate New York, get turned into bedroom communities from the large urban centers.
· Prologis (NYSE: PLD) - Hyperloop would presumably increase the volume of freight and merchandise shipped. That would create a tremendous opportunity for Prologis which provides warehouse space near transportation hubs. A major opportunity created by Hyperloop will be new warehouses farther out from ports and big cities.
· Amazon (NASDAQ: AMZN) - The Everything Store is basically a logistics company and Hyperloop is a next generation logistics solution. Hyperloop One CEO Rob Lloyd has even described his company's technology as "Amazon Prime on steroids." Hyperloop would make Amazon more profitable by greatly reducing transportation costs while speeding up delivery times. A fulfillment center in Ohio would be able to provide same day delivery for merchandise ordered in Chicago or New York by utilizing Hyperloop.
These are just a few of the publicly-traded companies that might benefit from Hyperloop commercialization. Shrewd investors should have no problem positioning themselves to cash in on this new technology that might completely transform our world.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.