Colin’s note: However you might feel about Elon Musk, you can’t deny he’s got a sharp eye for investment opportunities…
From electric vehicles (EVs) to rockets, he’s consistently at the cutting edge of the industries he pursues. So when he recently upped his stake at Telsa and hinted at what might be the next significant investment trend, it caught my attention.
Musk says it’s got less to do with EVs… And everything to do with the rise of artificial intelligence and advancements in the robotics industry.
When it comes to these transformational tech megatrends, if you find the right company at the right time, it pays off in a major way.
So while his personality or politics might not be your cup of tea… It’d be a mistake to let that blind you to the truly extraordinary investment trends and opportunities he puts on your radar.
You can hear all about it in today’s video below. Or read on for the transcript.
Regardless of personal opinions about Elon Musk, it’s undeniable that he has a remarkable knack for pinpointing extraordinary investment opportunities.
From his first ventures in online directories and digital payments… to leading innovations in reusable rockets and electric vehicles… Musk has consistently been at the cutting edge of industries.
And clearly, that has significantly boosted his wealth and those who invested alongside him.
Recently, Musk hinted at what might be the next significant investment trend. Giving investors a clear indication of what investments might pay off in a major way in the years to come.
However, mainstream financial media might have led you astray with their coverage.
Consider these headlines as examples.
Elon Musk’s Tesla Ownership Sparked A Firestorm – Webush
Elon Musk complains about his smaller stake in Tesla after wasting it on buying Twitter – Electrek
These were actual headlines.
While Musk’s personality and political opinions might not be for everyone, there’s an underlying principle to consider.
Hang out or listen to people who are critical of Musk and there’s a good chance you’ll miss out on an extraordinary investment trend.
But if you associate with individuals who possess business insights similar to Musk’s, you’re likely to stumble upon some great investment opportunities.
Put more simply, listen to journalists who are critical of Musk and your bank account will likely look more like the journalists rather than Musk’s…
So when Musk expressed his desire to increase his Tesla stake from 13% to 25%, I immediately took note of why he wanted to do this.
Interestingly, his rationale for seeking more shares in Tesla isn’t directly tied to the electric vehicle market … which outside of Tesla is a pretty murky space.
Instead, Musk aims to gain more equity in Tesla, to reward him for endeavors in artificial intelligence (“AI”) and robotics.
You might have seen my video at the Consumer Electronics Show – CES – last week in Las Vegas saying the same thing.
AI – and particularly robotics – represents an extraordinary investment opportunity for investors.
The fact that Musk is not interested in working at Tesla unless he gains more control has me even more convinced we’re on the cusp of the next major investment trend.
One might wonder if this is a strategic ploy by a billionaire to retain influence over a company he might lose grip on, especially considering his overinvestment in Twitter.
Musk’s biography does recount instances where he lost control of companies he co-founded, most notably PayPal… experiences that seemingly still affect him.
However, I don’t think this move is about controlling Tesla.
I’m inclined to believe Musk.
AI and robotics are the prime investment frontiers for the coming decade. So the question now is, how do you play this as an investor?
On the AI side, it’s dominated by large mega-cap companies like Microsoft, Google, Amazon, and Nvidia… the usual suspects.
Chances are, you have exposure to these companies through index funds or directly. You’re already invested in AI.
Sure, there are a few under-the-radar names, but the leaders in AI are already multibillion-dollar companies.
In the coming years, financial institutions, insurance carriers, healthcare providers, Hollywood, and many other industries will reap the benefits of AI. So there are still some opportunities that aren’t fully appreciated by investors.
But at the end of the day, AI is going to flow money back to the large cloud providers (Amazon, Google, and Microsoft) and benefit the large chipmakers (Nvidia, AMD, Broadcom, TSM, and Intel).
But what about robotics?
That’s the field with the most opportunity.
There’s no dominant incumbent with billions of dollars to keep competitors on the sidelines in the robotics industry.
There are also so many use cases surrounding robotics from transportation to automated surgery and manufacturing.
It’s seemingly a wide-open field. Similar to electric cars, online payments, or reusable rockets once were.
Yes, there are companies like Boston Robotics, and certainly Tesla, Amazon, Google, and Samsung, among others, have products and use cases.
But there’s no true dominant competitor like there is in enterprise software, cloud computing, and semiconductors.
While investing in AI is more obvious… robotics will be a treasure hunt.
Find the right company at the right time, and it could pay off in a major way. That’s why Elon Musk wants more skin in the game at Tesla.
Despite already being the richest man in the world, robotics provides an opportunity even Elon Musk wants to enjoy.
My Exponential Tech Investor subscribers already know we recommended a leading robotic company being used by one of the largest companies in the world. (Paid-up subscribers can access that here.)
And believe me, there are numerous other picks in the robotics space that are coming to our faithful subscribers when the timing is right.
Because like Elon Musk, I believe robotics represents one of the best investment opportunities over the next decade.