Political Policy Changes Redefining One Industry and Creating Massive Opportunity

Matt Thalman - INO.com Contributor - ETFs


This summer investors have witnessed firsthand how political policy changes can affect commodity and equity prices. In July both France and the United Kingdom announced it would ban the sale of diesel and gasoline powered cars by the year 2040. Other countries like Norway and India have set goals of even earlier dates to no longer have oil based vehicles sold by 2025 and 2030.
India had even taken it one step further and announced that not only will gasoline vehicles not be sold after 2030, but all gasoline vehicles will need to be replaced with electric and battery powered vehicles by that year.

The Netherlands wants to switch to electric vehicles by 2025 while Germany intends to make the change by 2030, but neither has set these plans in written law. But, the most notable announcement comes from China, a country that has over 300 million registered vehicles. Chinese authorities have not yet set a deadline for the end of sales of internal-combustion vehicles, but they have made it clear that they are working on a timetable.

While the U.S. and some of the other leading countries around the world have yet to come out and formally announce a date of when internal combustion engines will no longer be allowed, many believe there will come a day that all first world countries have such a ban.

So from an investing perspective, cashing in on this opportunity is simply just buying investments today and waiting. Continue reading "Political Policy Changes Redefining One Industry and Creating Massive Opportunity"

Tesla Gigafactory Could Be Boon for Graphite, Lithium, Cobalt: Simon Moores

The Gold Report: Tesla Motors Inc. (TSLA:NASDAQ) is planning to build a $5-billion "Gigafactory" in the southwestern U.S. that would produce batteries for its high-end electric cars. You seem excited about it. Tell investors why they should be.

Simon Moores: This one plant would essentially double the world's output of electric vehicle (EV) batteries. That's 500,000 batteries a year at capacity. The idea is to drive down the cost of EV batteries by 30% or more. Tesla is focusing on the supply chain to build the lowest-cost batteries possible. If it can make the cost of its cars much cheaper, it should spark mass uptake of electric vehicles. It's a plan to turn the world electric, in a sense, and Tesla begins in 2017 with the Gigafactory and the launch of its third generation and first mass-market model.

"Syrah Resources Ltd. has been active in 2014, announcing two MOUs for offtakes with China and Europe."

TGR: Would Tesla be building batteries solely for Tesla or would it be leasing its technology to other vehicle manufacturers? Continue reading "Tesla Gigafactory Could Be Boon for Graphite, Lithium, Cobalt: Simon Moores"

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