Do you hear that? It’s the winds of change blowing strongly. Today CNN reports American icon Anheuser-Busch (BUD) announcing the purchase of forty Tesla (TSLA.NASDAQ) electric trucks. This is one of those cultural moments – electric vehicles are moving into the next phase, corporate status symbol.
The symbolism here is important. When an Icon like Budweiser feels having electric trucks aligns with its brand – pay attention. First of all, as with passenger vehicles, Tesla went through status-symbol->luxury brand->going for broad market appeal.
Can they do it with trucks? Providing they can deliver product on time, and within spec (I’m confident on 2, not so much on 1.) yes, it looks like they can. This deal is a good sign for Tesla, and what’s good for Tesla, is good for energy metals. What’s good for energy metals is good for us.
I’d like to buy the world a [INSERT PRODUCT NAME HERE]
I’m a huge believer in the power of culture to shift markets. There are brute force examples such as boycotts and divestment programs. There are also much bigger and stronger forces, like currents which if we navigate, can be very helpful to time the market.
In this case, look at what Budweiser represents. They do clydesdales, fire trucks, working men, drinking an honest brew. Red state imagery. They are also a national brand. Their PR team has to weigh multiple demographics when rolling out new national initiatives.
So – In their minds, the cultural acceptance of electric vehicles has reached a wide enough mark. They can now have a token electric fleet (and it IS a token) without negatively impacting the brand in their red-state markets, while capitalizing on the positive optics in the blue-state markets.
This is 100 per cent a PR initiative, and kudos to their team. It can be hard to get the fusty operations guys to innovate, but this one is a home run. They can dine out on shiny Tesla trucks in Budweiser livery at events across the nation for months.
Cobalt, Lithium and Graphite… Oh My!
The economic snowball of battery technology continues to roll downhill. With no crazy breakthrough on the horizon, to meet demand will require economies of scale. Sources of cobalt, lithium and graphite considered marginal five years ago will likely be reevaluated and exploited.
Now is a good time to look at companies like First Cobalt (FCC.V) who is on a tear right now. Considering the money sloshing around in this market segment it can be a pretty pricey entry.
I’d suggest looking at our client list if you are shopping for bargains. we are lucky to have hitched out little red wagon to some shooting stars – look over the numbers and pick your favorite. If you want more details for context and analysis, we’ve got you covered.
(Personally I feel Quebec graphite is still undervalued – calice.)
Regardless of how you choose to get into energy metals, Now’s the time. Have a Bud or Bud lite and watch your portfolio grow.
FULL DISCLOSURE: First Cobalt is a client, no one else. I don’t own stock, or a Tesla, but would very much like both please.
[Stop begging in your disclosures -Editor]