Tesla and 3D Printing: Stocks for 4th Industrial Revolution
Elon Musk has made it his mission to “build the machine that builds the machine.”
He’s putting this in action in all of his companies.
More and more opportunities are going to unfold in the next decade … starting now.
And 3D printing is the key.
Watch today’s IanCast to see what’s coming for this incredible technology (and family of stocks)…
This is Industry 2.0 … the foundation of the 4th Industrial Revolution.
In five years, people are going to regret not getting into this epic opportunity. We don’t want you to be one of them!
Get our top stocks for 3D printing and the 4th Industrial Revolution now:
This Market is Great for Tech Companies
This period almost feels like a vacation for us after crashes in 2018, 2019, a brutal crash in 2020. Just to have some time to think about things with slightly longer time frames rather than worry about what people are doing gives us a little time to think further ahead and talk about some of the big things going on.
We’re seeing that divergence in the stocks were the ones that are getting bid up and seeing the most demand are the America 2.0 companies we’ve been talking about. They’ve been flat or up a little over the past couple of years, but over the last six months, it’s just been a straight line up.
It’s been a great time. You are seeing a lot of new companies in these sectors go public. It’s been a really great time for futuristic tech companies.
There’s one sector I talk about and I did my Bold Profits video on Tuesday on it. I read this quote and I will throw this article up again.
This is an article that goes back to June 4, 2020. It talks about Tesla acquiring two companies —one called Perbix and one called Compass Automation.
Then the quote I focused on in the article it says over the last few years Elon has developed an admiration for manufacturing and its importance, which he believes is underrated. We agree with him.
It goes on to say since 2016 he has been pushing Tesla to focus on “the machine that builds the machine.” and as Elon said: “We realize that the true problem, the true difficulty and where the greatest potential is, is building the machine that makes the machine.”
3D Printing Stocks
In other words, building the factory. It’s making the factory like a product. Today for example we have stocks like Parker Hannifin, Eaton, Rockwell Automation, 3D printing stocks —these components are part of Elon’s vision of building the machine that makes the machine.
In other words, you put the factory together like it is its machine that needs very little additional inputs. It will continue to need human interaction in terms of the controls and programming it, algorithms, etc. Nonetheless, the factory by itself works like it is a machine.
This has been a concept for a while. I have seen it called factory 2.0 and things like that. I’ve seen concepts of it, but I’ve never seen it on a big scale. Tesla is ahead of the game with that, as they are with pretty much everything they do.
It’s pretty amazing. Building the machine that builds the machine is a cool concept and it seems pretty obvious. Until recently it’s been expensive to do that.
Now, as 3D printing continues to get exponentially better and cheaper and robots and automation are getting better and cheaper, it’s totally possible. I think we’re definitely going to see a lot of that.
This could be a whole decade of the transformation of manufacturing and factories.
I talked in my video about the three Rs of recovery: restocking, reinventory, and reshoring.
We have spent nearly 30 years shipping out all our manufacturing to China, Mexico, and other places as part of globalization. Now we are going to start to bring a lot of this back.
Some of this will create new industries like space where the implementation of 3D printing —they have been the leaders. I know for SpaceX, 40% of its rockets are 3d printed. Now NASA is doing it too. Rockets aren’t cheap to make. It’s a way to lower costs and get stuff mass-produced because so many companies are trying to get in on the space economy.
A great way to start to boost that is 3D printing. 3D printing with metal is going to be one of the most valuable things a company can do.
Briefly on the space topic, here is an article from New Atlas: “Big Shoots for the Moon with 3D Printed Lunar Habitat.” Check that picture out of this 3D printed habitat.
This is conceptual. It’s called Project Olympus. It’s a collaboration with DIG, a 3D printing firm. They plan to send 3D printing robots to the moon that can take lunar material and turn it into habitats that can be used.
That changes the nature of space exploration. If you have to haul up cement and those kinds of things, the payloads would be absorbed just carrying loads into space. That would be very expensive.
However, if you could just send a robot that unpacks itself, makes a 3D printer and the printer starts to form various habitats you can use. Now that allows you to send additional robots and bigger 3D printers that can continue to form it.
It’s a completely different venture that can happen on the moon or Mars. It’s going to look and feel different than when people put up houses here, which is very labor-intensive. A 3D printer and a robot would do a significant amount of the work.
It’s like the beginning of the 3D printing hype cycle in the early 2010s. Now, I don’t think it’s far away at all. This space example is amazing because we have never had anything to compare it to. It’s a whole new era of travel and building where nothing has been built.
I have my STIXX portfolio and I put the Industrial Select Sector SPDR Fund (NYSEARCA: XLI) in there, which has not yet broken out. It does have a lot of America 1.0 companies in there.
Nonetheless, as that ETF develops over time you are going to see a few companies on their rise as they adopt Fourth Industrial Revolution techniques like 3D printing, robotics, lasers, photonics.
Engineering software is another one, so they can design and simulate.
Artificial Intelligence, AR and VR
That also plays into AR and VR, which is getting increasingly big in manufacturing.
Then there’s also the integration of all those things simultaneously with the megatrends we’ve talked about already. In other words, all of the machines that make the machine in the Fourth Industrial Revolution will be the Internet of Things.
Every micro-component and component will be talking to each other and will be monitored.
That can then create data and information which can then be turned into artificial intelligence (AI). Algorithms today are a kind of rudimentary form of AI. It will only get better over time. It depends on a constant amount of data coming through.
The more data you have, you can separate the noise from the signal. Now you can make the processing of the machine that makes the machine more efficient, safer, cheaper, and all those things.
It all comes back to data. In the past 10 to 15 years, the explosion of the amount of data we have and data storage has become exceedingly big. Now there’s edge storage. It’s always progressing and there will always be a way to make everything more efficient.
It does translate to more efficient manufacturing, as well as every sector. You can do anything with AI. You can have decentralized exchanges like the ones we are seeing in crypto as well.
To go back to Elon’s quote. He says the greatest potential is building the machine that makes the machine. It’s interesting the term “greatest potential” because many people today are focused mostly on the companies that make the tools.
The software companies, the chip companies, the tech companies. However, generally speaking, the greatest value in a bull market —I’ve quizzed you before on this, let’s see if you remember.
At the top of the bull market in 2000, was General Electric. It was an industrial company. I feel like this bull market is going to run extra long.
I believe we are going to have an industrial company that has similar capabilities where they are really making things —this will be the most valuable company.
They are creating the infrastructure by which everything is going to be built going forward. It’s a huge development.
Tesla: The New GE
GE was the titan of that before and now it is transitioning. GE is way down because they didn’t adapt and now we are seeing other companies like Tesla’s and other robotics and machine learning companies pick up steam.
Tesla is an industrial company. They make cars, they make solar roofs, they make the Megapack, they make the Powerwall. They are an industrial company for sure.
Perhaps they may be the company when this thing tops. They may be a multi-trillion-dollar company on a scale that today we have never seen.
I can tell you that the idea that we would have any company, let alone five companies, hit a trillion dollars in stock market capitalization was a very unthinkable thing even five years ago.
Perhaps Tesla could be the first $10 trillion company. We’re not saying that, but it’s possible given the number of things they have the lead in terms of innovation. Obviously batteries, mobility, automated software, solar roofs, energy storage, automation.
To circle this around, you can tell the markets are starting, between the rally in 3D printing stocks, the companies in the industrial sector that have adopted technology, those are starting to get bid up as people are starting to price the “machine that builds the machine” aspect into it.
I believe this is going to be a very large and growing trend. When people look back five years they will think, “I wish I would have bought those stocks.”
Just like people did with Amazon and Google and companies like that that were laughed at in the early stages. It’s happening still with Tesla. If you look at what they are doing and look at where the trends are moving in technology and manufacturing, they are on top of the game.
The Fourth Industrial Revolution —our short form of this is America 2.0. America 2.0 is a reference to the Fourth Industrial Revolution that is unfolding. It’s not something that is going to happen in the future. It’s unfolding right now as we speak.
Crypto & Cash Apps Trends
Every aspect of this is starting to take shape. Even within the machine that makes the machine, there is a role for crypto. Machines will use various forms of crypto to make determinations as to what process will get priority.
There is a cryptocoin that is designed for machines to talk to each other and to be used as an interface between two machines. The purpose is to transfer data between machines autonomously. Every time data is exchanged between two IoT devices, that’s what this platform would do. It would be a huge breakthrough project and something that is ultimately going to be necessary.
To bring this discussion to an end, the industrial sector is the place where you can see the stacking of all these technologies —IoT, AI, blockchain, crypto, robotics, 3D printing, photonics —really coming together.
When you see that, there is going to be an explosion of value. That is one thing we are beginning to see. We would tell you to check out XLI.
Truthfully, it has a lot of America 1.0 companies. So if you want a laser focus on just those companies, we would tell you you can get it by investing in some of the ARK Invest ETF. ARKK is the most generic one.
You could also subscribe to Profits Unlimited and any of our other services where we are laser-focused on the Fourth Industrial Revolution and America 2.0. We brought up crypto and you sent me an article today saying that Square, which is the owner of all those cash register hardware and Cash App, has put something like $50 million into Bitcoin.
They have been in Bitcoin for a while. Square’s Cash App has become a prominent Bitcoin exchange. Microstrategy kicked this off a few weeks ago. They bought Bitcoin twice and put $425 million into it. Now Square, which is a way a bigger company and more relevant company, put $50 million, which is 1% of the company. They are valued at around $80 billion. This isn’t a small speculative company.
This is a real company that dominates an industry that invests a lot of money in Bitcoin. I think this is going to start a domino effect and a lot of other big companies are going to put a lot of money into Bitcoin. That’s going to be a big driver of the next rally.
Accompanying the news of Square putting $50 million into Bitcoin, Bitcoin prices started to head toward $11,000. I retweeted someone who said between Square, Microstrategy, and Grayscale, how many billion dollars’ worth of Bitcoin do these folks own. It has to be extraordinary.
I think between those three it’s around $5 billion. That’s 2.5% of the entire amount of Bitcoin in existence.
Then there are other whales like Coinbase. Coinbase has more than 900,000. I check this stuff because the number of Bitcoin on exchanges is plummeting.
We are right before a huge shortage kicks in. Any amount of demand is going to lift the price. Coinbase is the biggest exchange. They have 900,000 Bitcoin. That’s around 5% of all Bitcoin.
You also notice one of the things I’ve used to time Bitcoin in the past was the premium that GBTC trades relative to Bitcoin. It got to a minimum last week. The premium hit 6%. It went lower and then even lower the next day to 5%. That’s the lowest I have ever seen.
When it’s lower, usually that precedes a big run-up in price pretty quickly. I remember at the bottom in 2018 the premium was down to almost nothing, maybe 1% or something. Equally, I can tell you that at the peak in 2017 GBTC traded at a 100% premium.
I think it might have been as high as 130% even. II know. If that goes up that’s going to be huge for Grayscale’s share price. I wouldn’t rule it out this point with Square buying in.
It’s a message for people who are for Bitcoin and understand it that more companies are going to come into Bitcoin. It’s only a matter of time.
The reason I believe Square is doing it and Microstrategy is doing it —by the way, Microstrategy is not in any of our portfolios. Please don’t go and buy it and then come and write to us if the stock price goes down.
They are buying Bitcoin as part of their cash holdings.
Bitcoin Will Overthrow Gold
That goes to our argument as Bitcoin being the future of the store of value. There’s a lot of money around the world where people want to put into something they can always turn to.
In a different time, that store of value was gold. However, with Bitcoin, I believe over the next 5, 10, or 15 years gold will go down to whatever its industrial value is.
The store of value in terms of assets is going to move to Bitcoin. It’s part of our thesis that there will be a significant run in Bitcoin over the next one, three, five, seven, and even ten years.
It’s going to take some market share from gold for sure. Gold is a $10 trillion asset right now. Bitcoin is about 5% of that. Actually, it’s more like 2%. They have a lot of room to grow. Even if they take a small percent of gold’s market share it will be a huge rise in the price of Bitcoin.
I think they are going to take all of it over time. I believe gold is going to go some minimal amount. I know many people are all for gold and we will get some heat for this. But, hey, that’s our view.
I laid out a price target of $50,000 for Bitcoin. The truth is, when you look at the supply-demand dynamics for Bitcoin I think we have a shot at $50,000for this year.
Once it passes it is high it will be like a straight line up. You can’t imagine it when it’s been sideways for so long, but when it’s in the moment doing it it’s pretty crazy. We track a lot of this every day.
The supply has shrunk on numerous fronts. The Halving has made half the reward if you are a Bitcoin miner.
You can check the Iancast videos and see the vast majority of Bitcoin being bought is being handled. It’s being held forever at every place whether it be Cash App, Coinbase, or Grayscale.
Into any increase in-demand and the fact that Microstrategy, Square —and you can bet other people are going to ask why Square is doing this. That’s going to cause a chain reaction.
There are benefits to owning Bitcoin over monetary instruments like cash. In Europe for example they still have negative interest rates and they are probably going to go even more negative. So you lose money by putting it in a bank.
Maybe we take a little and put it in Bitcoin. Then that chain reaction will go to other stores of value currencies as well.
As Bitcoin starts to float up people will say, “What’s next?” Bitcoin Cash, Litecoin, and all the DeFi coins that have crashed in the last couple of weeks, then Ethereum because that’s also the big platform the projects are based on.
Ethereum is like the Android of crypto. People have built all these apps on it for all kinds of financial purposes. It’s very new but I think it’s 11% or 12% the size of Bitcoin. There’s so much value there.
It’s clear it’s going to be the leader for quite some time. I don’t think it has that much downside at this point. I don’t think Bitcoin or Ethereum does. They are both very good bets for the future.
There is an excess of 1,500 projects on the Ethereum blockchain last time I checked. It’s so far ahead in the lead at this point. There are only going to be more that come.
The fact that people have chosen Ethereum as the blockchain to put their apps tells you that there is something about this technology that is scalable, that works and they felt comfortable enough to bet their futures on.
A lot of people, really prominent people, have quit their jobs and are now fully immersed in crypto. It’s pretty impressive what has come out of the crypto industry over the last five years or so.
Aphria Stock Gets Bid Up
To bring to an end, you also noticed that Aphria was being bid up in the stock market today. Cannabis is finally getting a bid. People are coming to bid cannabis stocks up.
In the past two days, Aphria is up over 20%. There’s huge call-buying activity there. That means people are really bullish on the stock. They report earnings next week.
Like crypto, I don’t see much downside for pot stocks at all. They have been flat for over a year now. Some of them are looking good. Some are up double digits today. Even the ones that have been lagging are catching a bid.
In other words, Ian and I are pretty much nonstop immersed in the markets all the time, except when we’re sleeping for brief periods.
Ian, we’ve covered the usual roundup. America 2.0 stocks are on fire. We continue to be bullish, optimistic, positive on them. We took a lot of heat on Apple, but it’s just been hanging out doing nothing. Our portfolios are rocketing up.
I can tell you Profits Unlimited a week will be up 40% for the year. Compare that to the S&P which is up only 4%. The True Momentum portfolio is going to be up somewhere near 50%.
I think Extreme Fortunes, which is our small-cap service, is going to be up something like 80% pretty soon.
In other words, the focus on America 2.0 and the Fourth Industrial Revolution has never been more important. We have been talking about this for years and years. Cathie Wood has been talking about it for years and years.
Editor, Rapid Profit Trader