Investing in TESLAs Gigafactory

Investing in TESLAs Gigafactory

  1.      On September 3, 2014, TESLA announced that they had decided to build their gigafactory near Reno Nevada.  This was bad news for California, Arizona, New Mexico, and Texas who had been trying to convince TESLA to build the factory in their state. Now that the site has been chosen, a great opportunity is available to invest in the factory either directly and indirectly.

        We could invest directly in TESLA, or its partner PANASONIC. An indirect approach could also be successful. We could invest in the companies that will supply the gigafactory. The factory will require a great amount of lithium, since TESLA’s goal is to build 500,00 electric cars per year by 2020. The company that can supply the lithium and is located near Reno is Western Lithium USA (WLCDF). The cost for transporting the lithium to the gegafactory would be minimal, as compared to bringing it from other states. Each battery also requires a big mount of graphite. While several companies could supply the graphite, one company, Northern Graphite Corp., could supply all that is required. The company is located in Canada, which satisfies one of Elon Musk’s requirements for suppliers to be near the factory. 

        All these companies present a good investing opportunity.  

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