How to Get Rich as the Automotive Industry

Crashes and Burns…

I’d like to begin exactly where I left off yesterday, with a quote from Bill Gates…

"If GM had kept up with the technology like the computer industry has, we would all be driving $25.00 cars that got 1,000 miles to the gallon."

The sad reality for automakers is that their reign over American manufacturing is over.

For savvy investors, however, we now have an opportunity to earn a fortune as traditional carmakers head toward extinction.

The IPO market is the perfect venue in which to mint our fortune.

I know what you’re likely thinking – IPOs represent a quick road to riches for big institutional investors. But the average retail investor can get killed, right?

Take the recent IPO of Coupa Software (COUP), for example.

Shares originally priced at $18.

But by the time the market opened to the average investor, they were already trading for $35.

So unless you’re among the privileged Wall Street elite, you’re presently down over 14% on the Coupa Software IPO. Ouch!

The unfair advantage runs even deeper in the pre-IPO market.

Pre-IPO investors in Coupa Software earned as much as 25-times their money.

The frequency at which these rigged outcomes occur is shocking.

Clearly, the ideal time to invest is long before a company goes public. Yet pre-IPO shares are limited only to the wealthiest of individuals – ones with millions to invest in venture capital funds.

Well, I have extremely good news to report.

We’ve discovered a way for ordinary investors to legally gain access to pre-IPO shares.

Even better, you don’t need to be an accredited investor.

You don’t need a million bucks to invest, and…

You don’t even need to fill out any paperwork. (That is, until it’s time to file your gargantuan gains to Uncle Sam on your tax returns.)

The strategy we’ve discovered, in fact, is virtually unknown among the investing public.

As the final nail gets driven into in the coffin of automakers, you could be enjoying gains typical of a venture capitalist.

So please tune in tomorrow.

We’ve isolated the one company ready to prosper as a result of the automotive industry’s demise.

It’s easily the hottest private company in existence.

Fortunes upon fortunes will be minted from the coming IPO.

I believe it will be the biggest listing in the history of the New York Stock Exchange.

But if you want to grab a few precious pre-IPO shares, you have to tune in tomorrow.

Good investing,

Greg Miller
Senior Technology Analyst, Wall Street Daily

Staring Down a Gun Barrel –

Ford, Chevy and GM…

Is it possible that you’ve already purchased the last car you’ll ever own?

As Louis Basenese described yesterday, self-driving, fully-autonomous cars are here, and they’re ready to tip the existing automotive industry into chaos.

I’m sure you’ve noticed that many semi-autonomous features are already built into low- to mid-priced cars.

In fact, for under $30,000 you can buy a Ford that 1) keeps you in your lane, 2) brakes when traffic slows, and 3) squeezes into parallel parking spots.

More expensive car manufacturers, like Audi and Lexus, combine these systems to offer even more autonomy.

Since such technology is moving at light-speed, the question I get asked most is…

“When will swarms of fully autonomous vehicles hit the road?”

Well, in two different cities of the world, you can click an app on your smartphone and hail a cab that drives itself. Now, of course, the cabs are experimental, with limits on how far they can go. But it proves just how close we are to a mass consumer rollout.

Indeed, the race is on among automotive elites to be the first-mover in the driverless space.

Volvo, Mercedes, Ford, and GM are all at various stages of development on their fully autonomous cars.

Technology giants – Google and Apple – are also viable players in this new and lucrative space.

And, of course, Tesla – a company that perfectly blurs the line between technology and automobiles – also aspires to wear the driverless crown.

Meanwhile, sensor and semiconductor companies – like Intel, Nvidia, and Mobileye – are further developing products that function as the eyes, ears, and brains of driverless cars.

It's impossible to overstate the radical shift presently occurring. That is, away from traditional automobiles toward driverless cars.

Imagine having limitless cars at your disposal – an SUV for shopping, a luxury sedan for a special dinner, a convertible to ride to the beach.

Such a day is far closer than you might think.

If you absolutely love owning and driving your car, this might be difficult to read…

But I’m predicting that autonomous cars will penetrate 80% of the traditional car market.

Eventually, it’ll be illegal to drive your own car without special training!

How’s that for a paradigm shift?

The existing automobile industry is staring down a gun barrel, and its impending doom will hit across many other industries.

For example, what will the insurance companies do when vehicle accidents go down by 90% or more?

What will happen to the banking industry since more than a third of non-mortgage consumer debt is comprised of auto loans?

For the record, I don’t feel a bit sorry for the car-industry execs.

As Bill Gates said…

"If GM had kept up with the technology like the computer industry has, we would all be driving $25.00 cars that got 1,000 miles to the gallon."

Good investing,

Greg Miller
Senior Technology Analyst, Wall Street Daily

RIP: The Automotive Industry

(1903 – 2016)

Silicon Valley is set to strike again!

Just like Netflix upended movie rentals and television.

Just like Amazon laid waste to bookstores and increasingly all manner of retailers.

Just like Google and Yahoo! redefined advertising.

And just like digital news outlets upended the entire print publishing industry.

Now, the automotive industry is on a collision course with disruption.

This isn’t a situation where a single killer technology or app will cause the old guard to crumble. Rather, it’s a convergence of multiple, disruptive trends set to unleash an unstoppable wave of change.

Consider the following…

Advances in software and machine learning are making autonomous driving a reality. Heck, last year, Tesla Motors Inc. chief Elon Musk said the advancement of technologies to enable self-driving is a “solved problem.”

The only thing standing in the way? Regulators. But recent developments reveal that regulators are not only stepping aside, but stepping up to help usher in this reality.

In fact, this week, the Iowa Department of Transportation decided to turn a nearly 30-mile stretch of I-380 into a self-driving corridor.

At the same time we’re speeding toward autonomy, we’re also speeding toward connectivity. After all, once people are freed up from the burden of actually driving, they’ll need something to do.

That’s why automakers are increasingly connecting newer car models to the internet. By 2021, Business Insider Intelligence estimates that over 380 million connected cars will be on the road.

Granted that’s a prediction, subject to too much optimism. But we have credible, real-world validation to support it. In the first quarter, AT&T reported it now provides data connections to 9.5 million cars (and counting).

That’s not all.

Advances in battery technology are extending the range of electric vehicles, thereby making them instantly more attractive to a wider population. Yes, a day without gas stations is coming!

The rising popularity of ride-sharing also threatens to disrupt the equilibrium in the automobile market.

Add it all up and Colin McKerracher, head of advanced transport at Bloomberg New Energy Finance, is spot-on when he says…

“Vehicles and the way they are used will change more in the next two decades than they have in the last 100 years.”

Investors savvy enough to see past the not-so-distant horizon here stand to make a killing.

I expect it to be very similar to those that invested early in Amazon, Google, Netflix… the list goes on.

So be ready. The automotive industry is on a collision course with disruption.

Before long, we’ll be in touch with specific actions to take to profit from it.

Good investing,

Louis Basenese
Investment Director, Wall Street Daily