Why Every Tesla on the Road Today Is Already Obsolete

Just about every electric motor in the world today suffers from the same design failure that plagued the very first electric motors, built way back in the first half of the 19th century. But one company has finally figured out how to fix it. And it's publicly traded. You are receiving this email because you subscribed to Wealth Daily. [Click here]( to manage your e-mail preferences. [Wealth Daily logo] Why Every Tesla on the Road Today Is Already Obsolete [Alex Koyfman Photo] By [Alex Koyfman]( Written Oct. 25, 2018 Dear Reader, Bombs in the mail... Dow down another 600 points... Michael Moore publicly proclaiming that Donald Trump is outsmarting everyone... With all these stories making headlines in the span of 24 hours, one could be forgiven for thinking the sky is falling. Unless one is a Tesla (NASDAQ: TSLA) shareholder, that is, in which case yesterday was just about the best day ever. In what must have been a shock to fans and detractors alike, the electric carmaker announced earnings of $2.90 per share, flying in the face of analysts' expectations of a $0.19 loss. After-hours trading immediately responded, sending shares up as much as 11%. Musk haters were left scratching their heads, while his fans, who have stuck by him through every globally televised joint puff, every stutter-ridden public address, and every loopy promotional stunt, were running to the bathroom to clean themselves up. As a neutral observer of Tesla, I have to say I'm both impressed and hopeful that this success continues because, let's face it, this country could use a world-beating automotive brand. Which makes it all the more difficult for me to say this: Within the next few years, Tesla will need to redesign its electric motors, which will mean substantial retooling in its fabrication plants and very likely a substantial redesign of all of its models. And because this redesign will be based on technology Tesla does not own, not only will Tesla have to spend billions modernizing the heart of every vehicle it produces, but it will also have to either pay billions in royalties to the company that does own the technology or buy the company outright. This Energy Breakthrough Could Make Tesla and Lithium Obsolete Thanks to a stunning breakthrough in a top secret army research lab, an "endless clean energy" source is poised to disrupt the $1.2 trillion energy industry. Amazon, Google, and Apple have already invested billions of dollars in this energy source. And there's one tiny stock that's set to skyrocket by as much as 1,587% while more institutional investors pour in. [You can get all its details here.]( Wait... What? You read that right. Tesla's electric motors are all hopelessly out of date and effectively obsolete. But this isn't a problem that's localized to Tesla products. Just about every electric motor in the world today suffers from the same design failure that plagued the very first electric motors, built way back in the first half of the 19th century. Every single electric motor, from the tiny one that makes your phone vibrate all the way up to the giant, 40,000-horsepower monsters that propel seagoing vessels, has the same defect. The problem relates to efficiency and is actually fairly easy to explain. Electric motors are built to function at a single, optimal speed, measured in revolutions per minute. Any deviation from that set speed and the amount of energy going into the motor no longer produces the same amount of mechanical motion. Think of it as a bicycle with just one gear: It only really works well under a very limited range of external conditions. The same holds true for electric generators, which are really nothing more than electric motors operating in reverse. Instead of putting charge in to get the shaft to spin, you apply an external force to spin the shaft, and charge is produced. With today's generators, spinning that shaft at a specific speed is necessary to take maximum advantage of the production capacity. Go too fast or too slow, and you're wasting your effort. The amount of wasted effort this creates globally is staggering, because our reliance on electric motors and electric generators is even more staggering. It's the Most Important Mechanism Known to Man. Period. More than half of the energy mankind produces is consumed by some form of electric motor. That energy, in dollar terms, is worth more than $3 trillion — which surpasses the annual GDP of the UK. On the flip side, the numbers are even more dramatic, as 99% of the energy we produce comes from electric generators. Every coal-powered plant, every nuclear plant, every hydroelectric dam, and every wind turbine employs these generators and therefore wastes billions of dollars per year running them at speeds it cannot control, or resorts to big, heavy, energy-sapping gearing mechanisms to achieve the ideal spin rate. Like I said earlier, this is a problem that's been with the electric motor since literally the first one ever created, back in the 1820s. It took nearly 200 years for the flaw to get ironed out, but today, for the first time ever, we have a solution. The company that made this discovery has on its hands an innovation worth tens of billions, but because it's a tech startup, nobody even knows its name... Not yet, anyway. Well, almost nobody. Thanks to some recently sealed collaboration agreements with some mid-sized North American partners, the first products incorporating this revolutionary patent are already finding their way into the market in the form of retrofitted wind turbines and high-speed train motors. The results have been extremely impressive, which means fairly soon, you're going to start seeing major companies falling in line as well. Apple Insider: Secret Prototype Is Challenging the iPhone Bloomberg calls it "Apple’s Next Big Thing." CNBC says it will be ["bigger than the iPhone."]( And Apple CEO Tim Cook says consumers "won’t be able to live without it." Best of all, we’ve identified [the tiny $5 stock that's making Apple’s new iPhone-killing device a reality.]( [This is an exclusive story that you won’t want to miss.]( The Biggest Names in the Business Are Watching Closely I'm talking about the likes of General Electric (NYSE: GE), Honeywell (NYSE: HON), Northrop Grumman (NYSE: NOC), and yes, Tesla itself. There is simply no way around it. Just think about it: If your business literally revolved around electric motors and generators and you suddenly got the opportunity to get 6%, 8%, even 10% more bang for your buck, while enhancing service life and substantially decreasing maintenance costs, wouldn't you do it? In all likelihood, you wouldn't even have a choice, because if you didn't do it, your competitor would, and sooner or later, you'd be out of business. The company behind all of this is small, but it's already well on the road to flipping the industry upside down. Today, its market cap is well below $50 million. A few years from now, if things continue down the path they're on today, it could be 200 times as big. When I learned all of this just a few weeks back, it took about half an hour for all of the implications to sink in. And then I got to doing more research on what the company does and what it could mean. If you want to read more about this, [click here](. Within that link you'll get the rest of the story, including the company's name and ticker symbol (yes, it's publicly traded). Fortune favors the bold, [alex koyfman Signature] Alex Koyfman [[follow basic]@AlexKoyfman on Twitter]( Coming to us from an already impressive career as an independent trader and private investor, Alex's specialty is in the often misunderstood but highly profitable development-stage microcap sector. Focusing on young, aggressive, innovative biotech and technology firms from the U.S. and Canada, Alex has built a track record most Wall Street hedge funders would envy. Alex contributes his thoughts and insights regularly to [Wealth Daily](. To learn more about Alex, [click here](. Enjoy reading this article? [Click here]( to like it and receive similar articles to read! Browse Our Archives [The Wrong Day...]( [Yeti Gets Ready to Go Public]( [Canadian Cannabis Shortage: BULLISH!]( [Is Tesla's (NASDAQ: TSLA) AI Chip the Ultimate Edge?]( [5G Spectrum Auctions: What Investors Need to Know]( --------------------------------------------------------------- This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here](, and view our privacy policy and information on how to manage your subscription. To ensure that you receive future issues of Wealth Daily, please add newsletter@wealthdaily.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance. [Wealth Daily](, Copyright © 2018, [Angel Publishing LLC](. All rights reserved. 111 Market Place #720 Baltimore, MD 21202. The content of this site may not be redistributed without the express written consent of Angel Publishing. Individual editorials, articles and essays appearing on this site may be republished, but only with full attribution of both the author and Wealth Daily as well as a link to www.wealthdaily.com. Your privacy is important to us -- we will never rent or sell your e-mail or personal information. [View our privacy policy here.]( No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. [Wealth Daily]( does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question.