When we think about the pressing issues facing humankind, nothing is more relevant today than Climate Change. Certainly, preventing nuclear wars and participating in the conversation about AI and Biotech and how these breakthrough technologies can be used for good rather than harm should be at the top as well.
However, during the ever challenging quest towards finding true value that can generate returns without compromising sustainability is where we found Tesla. As a matter of fact, Tesla is the company that inspired Kaccelerator´s ethos.
First and foremost, Tesla's mission is to accelerate the world's transition to sustainable energy through increasingly affordable electric vehicles and energy products.
Climate Change is a real threat and Elon Musk has been the only business leader who is actually trying to change and disrupt the current status quo on regards to our addiction on fossil fuels. His vision laid out in Master Plan One and later updated in Master Plan Part Deux, should be considered masterpieces for next generation entrepreneurs. In short, father profit’s relationship with mother nature must be founded on progress and mutual respect.
Many pundits have been saying that Tesla is a fraud. In fact, Tesla is the most shorted and hated stock in the market, while leaders of companies that are still clinging on the legacy of the industrial revolution are trying to protect the status quo by criticizing a young visionary who is warning human-kind about the unsustainable path of their current business models.
To leapfrog the current system of car production, Tesla has been disrupting everything. In fact, according to Elon Musk, an electric vehicle (EV) and an internal combustion engine vehicle (ICE) only share 7% of their components. Meaning despite the fact that they look extremely similar from the outside, they are two very different species in the automotive world.
Many people have said that it will be easy for incumbents to produce electric cars. I think they are wrong. It’s too late for them. It will be very difficult to convert all these old combustion engine factories into to electric vehicles plants and Tesla not only has a first mover advantage, they have already built the Gigafactory in Nevada -and soon in Shanghai- which will enable the company to produce high volumes of EV and batteries in an efficient way. Each Gigafactory will eventually produce 500,000 battery-powered vehicles annually, and are at the center of Tesla’s economic of scale strategy to take the transportation market by storm.
On top of this, Tesla is leading the mother of all artificial intelligence projects across the globe. Tesla´s Autopilot is probably the most advanced computer vision system in the world, and its machine learning algorithm will help the system improve dramatically once more cars are on the streets. As soon as Level 5 Autonomy arrives, it will create new revenue streams for Tesla, making it more profitable and sustainable.
No other company fits Kaccelerator´s ethos and mission better than Tesla. For us, Tesla is a buy and hold and long-term investment, that serves as an anchor and pillar for Kaccelerator’s growth in the present and future. Tesla is the best combination of “Green Technologies” and “Artificial Intelligence” for Kaccelerator thematic investments funds.
Kaccelerator is a next-generation impact investment fund focused on disruptive innovations that are changing the world for the better and that have long-term growth potential. We believe in the transformative power of allocating capital into mission-driven businesses that can deliver positive change and alpha.