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Redefining the Automotive Industry

Redefining the Automotive Industry

Over the last few weeks, I’ve been telling you about an iPhone-like moment that’s coming to the car industry.

When I say “iPhone-like moment,” I’m talking about a new product that gets released to the general public that instantaneously changes people’s perceptions and expectations of what they want from that product going forward. This is much in the same way that Apple’s iPhone completely and utterly redefined what a smartphone should look like and what it could do.

And I now believe the car industry is about to be disrupted in exactly the same way. In fact, its iPhone-like moment is just a few months away…

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See, I believe that moment is going to occur when Tesla releases its Model 3, which is currently set to launch sometime toward the end of this year. When that happens, expect to see all hell break loose in the car market, because the Model 3 is going to be the first true mass-market, self-driving electric car.

I believe the car industry is about to be disrupted in exactly the same way that Apple’s iPhone completely and utterly redefined what a smartphone could do.

In fact, the Model 3’s sales are expected to take off much in the same way that Ford’s Model T did back in the early 1900s.

Beyond that, it’s going to be the first mass-market car available for purchase over the Internet, meaning that it will completely bypass auto dealers. And, by being completely electric, the car has only three parts in its transmission. That’s bad for auto repair shops and people who make parts for maintenance, as electric cars simply need less upkeep.

In other words, that have grown up around gasoline-based mechanical cars are going to go into decline … some slowly, others more quickly. This is why I’ve been telling you to avoid auto and auto-related stocks, and I believe that this is still the right thing to do going forward.

Regards,

Paul Mampilly
Editor, Profits Unlimited

 

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