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Navigating the Future: Exploring the Surge of Tesla’s Robotaxi Revolution

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Investing in Disruptive Technologies: The Case for Supplier Stocks

When a groundbreaking product makes its debut, how should you approach investing?

Is it wisest to purchase shares of the company behind the product? Maybe not.

Let’s explore an alternative strategy.

Since Apple (AAPL) launched the first iPhone in June 2007, its stock has soared over 6,000%. However, another company saw an even greater surge in its stock price – Broadcom (AVGO). This Apple supplier’s stock skyrocketed by more than 16,000% since the iPhone’s introduction.

aapl avgo post iphone

Another notable instance is Tesla’s (TSLA) Model 3, launched in July 2017. Regarded as a pivotal electric vehicle, Tesla stock has surged approximately 1,500%. However, it’s crucial to note that the Model 3 utilized chips from Nvidia (NVDA), which has seen its stock climb around 14,000% following the vehicle’s release.

This trend is not new. Let’s recall the first personal computer, IBM’s (IBM) model 5150, launched in August 1981. Since 1983, IBM’s stock rose over 800%. Yet, the IBM PC relied on an x86-architecture Intel (INTC) 8088 processor, making Intel’s stock jump nearly 4,000% since 1983.

This history underscores a key point: suppliers often outperform the companies making the main products.

With that in mind, let’s shift our focus to the next potential breakout supplier stocks.

The Robotaxi: A Game-Changing Release on the Horizon

In just a few days, Elon Musk, Tesla’s CEO, will unveil a new product that some believe could rival the impact of the iPhone or the Model 3.

This product is called the Robotaxi. It is expected to revolutionize transportation.

The Robotaxi will reportedly be a fully self-driving vehicle without a steering wheel or pedals. Descriptions suggest a two-seat interior with a spacious center console, and Musk claims it will have the lowest cost per mile for any transport option available.

Additionally, there are plans for a ride-hailing app (similar to Uber) to enable customers to summon rides in the Robotaxi.

Though it may sound futuristic, this innovation is just around the corner.

When Musk reveals the Robotaxi this Thursday, it could be a moment where science fiction transitions to reality. This is what makes the upcoming launch so compelling.

Past product launches have also transformed concepts into tangible products, resulting in significant shifts in consumer behavior and the market.

And that’s where opportunities lie.

Final Thoughts on Maximizing Gains from Tesla’s Launch

Reflect on history: a mobile phone that enabled internet access anywhere we went sounded far-fetched in the mid-2000s. Yet, Apple made this a reality with the iPhone, creating a product that reshaped the world.

Similarly, the advent of affordable desktop computers changed productivity in the early 1980s when previous models were large and costly. IBM turned that vision into a reality.

When concepts come alive, transformative change occurs. Investors can seize opportunities for substantial profits.

As the Robotaxi is set to launch on October 10, there is immense potential for growth in both Tesla’s stock and its suppliers.

In anticipation of the Robotaxi’s launch, I’ll be hosting a special event tomorrow morning, October 7 at 10 a.m. Eastern, titled “Countdown to Elon Musk’s Moment.”

This event will focus on the upcoming release and how to capitalize on it. We predict it may catalyze a rally in autonomous vehicle stocks, and I’ve identified several suppliers that could significantly benefit.

Join my event tomorrow morning for insights and details.

As of the date of publication, Luke Lango did not hold (directly or indirectly) any positions in the securities mentioned in this article.

P.S. Stay updated with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issues on your Innovation Investor or Early Stage Investor subscriber site.

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