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of the best artificial intelligencesoftware in the world. Tesla’sconstant refinement of thistechnology has allowedit to take the lead in theautonomous driving space.Electric Vehicle Battery Prices – 2010-2020 1.2kThe average price of lithium-ion batterieshas dropped below 150 1k 800The Next Step for EVAdoption 600 400 200201020112012Tesla has made a huge leapover its competitors in anotherkey area – its battery technology.Expensive batteries have always been the mainfactor preventing the mass adoption of electriccars. But that’s changing now. The cost of batteriesfor electric vehicles is reaching a tipping point.A decade ago, the average electric vehicle batterycost 1,100 per kilowatt-hour. Fast forward totoday, and the average cost has fallen to 137.That represents an 88% drop since 2010 andit’s expected to keep dropping.Electric cars will become much more affordablethan internal combustion engine (ICE) cars in ashort amount of time. And if you look at Tesla,it’s already happening.Here’s an example The Tesla Model 3 and the gas-powered BMW 3Series both sell for about 41,000 in the U.S.When you factor in maintenance costs, thenTesla is already more affordable. Remember,there’s no need for an oil change or new sparkplugs in one of Tesla’s cars. And electricity isgenerally cheaper per mile than gasoline.The Near Future ReportPrice per ShareAnd Tesla’s biggest innovationsare not just limited to itsbleeding-edge AI. There’sanother key area in whichTesla is dominating thecompetition 20132014201520162017201820192020 0Source: BloombergAnd Tesla is constantly updating its batterytechnology to outperform the competition.Tesla announced that its next-generation batterywill allow it to offer an EV for just 25,000 by2023. That would make it less expensive than theaverage gas-powered car today.Tesla has also worked hard to strip cobalt out ofits batteries entirely. This is a key part of Tesla’sstrategy to dominate the EV space.Cobalt is the most expensive material in an EVbattery. And the cobalt supply chain is hard tomanage because the mineral comes from farflung places that are often mired in geopoliticaltensions.Tesla has already made incredible progress byreducing its use of cobalt by more than 60%. Thishas been a major contributor in getting the priceof its Model 3 down to where it is today.As it continuously drives down the level of cobaltin its batteries, Tesla will be able to offer EVsat an even more affordable price point over itscompetition.And Tesla even plans to expand its own battery6

manufacturing to keep up with rising demand.In fact, it has been working on a battery that canlast over one million miles. Think about that –most traditional car engines don’t last even athird of that mileage.The company is already building out enoughproduction capacity so that it can make 20million cars a year by 2030.That would make Tesla the largest carmaker inthe world. Already, Tesla’s signature Gigafactory1 in Nevada has allowed the company to producebatteries and other components for its cars ata rapid clip. Tesla is similarly expanding themanufacturing capacity for its vital componentsall over the world as I write this.As it expands these capabilities, Tesla will ensureit becomes the industry leader in affordable EVsfor years to come.While Toyota, Ford and other legacy automakersare still playing catch-up, Tesla has initiated awhole revolution in the EV space that shows nosigns of slowing down.And while Tesla is the leader in the EV/selfdriving space, it is certainly not alone Semiconductor Manufacturing, for the selfdriving prototype’s chip set. And rather thanbuild its own cars, Apple will likely tap anothercarmaker like Hyundai or Nissan to license itstechnology. That would ensure Apple’s selfdriving tech gains an entrenched position in theEV space in the coming years.And Waymo, Google’s self-driving division, alsoramped up its self-driving efforts in 2020. Backin 2018, the company started testing its ownride-hailing service in Phoenix, AZ. The testoriginally covered a small stretch of the PhoenixMetropolitan area.Well, by 2020, Google expanded to a more than50-square-mile stretch of Phoenix.And get this. Google’s taxi required no safetydriver in the front seat. Waymo worked to“geofence” this 50-square-mile area in Phoenixbehind the scenes. That means it mapped outall the streets and addresses. Google’s cars havethe equivalent of a working memory to navigatewithin the geofence.Waymo’s Ride-Hailing Service in Phoenix, AZThe Self-Driving Boom2020 was the year autonomous driving finallylaunched into the mainstream. And this wasn’tlimited to traditional car manufacturers.In fact, some of the biggest players in tech helpedpropel the self-driving space forward with theirown key innovations.Late last year, Apple finally revealed more detailsabout its EV/self-driving car initiative, ProjectTitan. Apple has kept this project quiet over theyears.But strong rumors are swirling that Applewill tap its manufacturing partner, TaiwanThe Near Future ReportSource: Business InsiderAnd its cars have racked up more than 20 millionself-driven miles on public roads. Of course, thepandemic ultimately affected its ability to widelytest the service last year.But Google is eyeing an expansion in 2021. Infact, it’s already begun testing its robo-taxis7

in San Francisco. And it’splanning to further expand itsfleet across parts of Californiaand Florida.93%92%Cruise – General Motors’(GM’s) self-driving division7%8%– saw over 2 billion in2018 2019investments from Microsoft,Honda, and SoftBank to aid inits autonomous driving buildout. And GM even launched itsown battery-powered 2022 Hummer 7202820292030Volkswagen is planning to launch 70 new electricmodels by 2028. And even Honda announcedthat it is the first carmaker to receive regulatoryapproval to sell Level 3 self-driving cars in Japan.Clearly, the industry is gaining momentum asmore and more companies roll out their ownelectric vehicles with self-driving technology.2020 simply set the stage for these companiesto drive innovation in the EV space. Andit’s setting up a whole wave of profits for EVproducers this decade.The 4 trillion market for electric vehicles willcontinue to grow as more players enter the ring.And it’s multiples larger than the consumermarket for televisions, personal computers, orsmartphones. Even though annual productionmay be higher for smartphones, PCs, andtelevisions, the average price point for EVs willensure that the market remains profitable foryears to come.Total EV sales are predicted to hit north of 60billion by 2030. And as EV costs go down, theseThe Near Future ReportEVsMarket Share (in %)Now, Google and Apple are farfrom the only players in thespace. Traditional carmakershave also rolled out their ownhome-grown initiatives overthe last year.Projected Growth of EVs – 2018-2030Diesel/GasolineSource: Automotive Newscars will see even wider consumer adoptionacross the globe.Quite simply, it’s a trend that will gain moreand more momentum over the next few years and it represents one of the most profitableopportunities for smart investors.But this begs the question: How do we profit?How to Profit From the EV/Autonomous Driving BoomI’m on record as being bullish on Tesla in thelong term. As I mentioned, I recommended myNear Future Report readers build a position inthe stock back in 2018.At the time, the stock was trading at anenterprise value to sales ratio (EV/sales) around4, and its enterprise valuation stood at 68billion. I saw an opportunity for my readersto jump into the stock while it still had somefantastic growth ahead of it.With all that being said, you might be surprisedto hear what I have to say next: I do notrecommend readers buy Tesla’s stock right now.8

Here’s why Right now, Tesla is simply too overvalued.Shares are now trading above 700. They weretrading at a comparative bargain back when Irecommended the stock. But today? The risk/reward setup simply isn’t attractive.But here’s the good news. We don’t have to buyTesla to profit from its dominance And it all has to do with Elon Musk’s secretiveproject: S.A.V.Project S.A.V.What is Project S.A.V.?Put simply, it is the future of transportation. It isthe “marriage” between electric vehicles and selfdriving technology. And it’s coming faster thanmost expect.And I’ve found the ideal way for investors toprofit from this emerging trend. It all has to dowith a little known Tesla supplier. This companyproduces a key piece of technology for ElonMusk’s Tesla. And it is this technology that willmake S.A.V. possible.I’ve put together a special presentation with allthe details. Go right here to get started.Regards,Jeff BrownEditor, The Near Future ReportP.S. As I mentioned above, several of my readersprobably thought I was crazy to recommendTesla in 2018. But as we saw, I was right aboutTesla. And I believe the company linked to S.A.V.could be an even better opportunity today.If readers missed the rally in Tesla, then I’dencourage us to get the full story. Go right here.To contact us, call toll free Domestic/International: 1-800-681-1765, Mon-Fri: 9am-5pm ET or email memberservices@brownstoneresearch.com. 2021 Brownstone Research, 55 NE 5th Avenue, Delray Beach, FL 33483. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibitedwithout written permission from the publisher.Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation—weare not financial advisors nor do we give personalized advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It maybecome outdated and there is no obligation to update any such information.Recommendations in Brownstone Research publications should be made only after consulting with your advisor and only after reviewing the prospectus or financialstatements of the company in question. You shouldn’t make any decision based solely on what you read here.Brownstone Research writers and publications do not take compensation in any form for covering those securities or commodities.Brownstone Research expressly forbids its writers from owning or having an interest in any security that they recommend to their readers. Furthermore, all other employeesand agents of Brownstone Research and its affiliate companies must wait 24 hours before following an initial recommendation published on the Internet, or 72 hours after aprinted publication is mailed.The Near Future Report9

Yes, Amazon sold books online. But the value of Amazon was its ability to pioneer the model of the online marketplace as we know it today. And Amazon now commands more than half of the e-commerce market in the United States. And of course, investors who realized this have made an incredible investment return from the time of