Senior financial analyst Alex Koyfman says Elon Musk is not building an electric car company like we've been led to believe.
Instead, his true ambition is to create a massive energy storage business, and one vanadium battery company building a “Tesla Killer Battery” stands in his way.
We reveal what it is in this teaser review for free.
The Teaser
Alex begins his presentation with some huge containers!?
This sounds about right for a financial analyst from Angel Publishing.
However, Alex does remind us that he accurately predicted the lithium boom long before electric cars were making daily headlines in early 2015 and made some timely picks, so let's hear him out.
He continues by stating that inside each steel container is a “revolutionary new battery technology.”
Although this new battery tech wouldn't fit inside an electric car, it still “terrifies Elon Musk” because he's trying to transform Tesla into the world's #1 power provider.
Tesla's Electric Takeover
A Google search for Tesla taking over the energy grid brings up Tesla Electric.
As per its website, Tesla Electric is a retail electricity provider that helps power your electric vehicle, your home, and supports the electricity grid with low-cost sustainable electricity.
Its two energy storage solutions – the PowerWall and the Megapack, were designed for residential and larger-scale utility and commercial use, respectively.
Musk’s strategy hinges on leveraging Tesla's battery technology to lead the worldwide transition to renewable energy, and so far, it's working.
In 2023 Tesla Electric's energy storage deployments grew by 90% over the previous year, with utility-scale Megapack's leading the way.
However, Musk's plan has one major flaw according to Alex…
The fact that its entirely reliant on lithium battery technology.
See, lithium batteries have a relatively short lifespan, which poses little issue for EVs. But it's a substantial obstacle when it comes to large-scale commercial and industrial energy storage systems.
This is precisely why the superior life span and safety of Alex's ‘heavy metal container‘ storage battery pose a direct challenge to Tesla Electric's business model and one small company is behind it.
The Pitch
All the information on this opportunity can be found in an investment report called “The Tesla Killer Battery: The Tiny Firm Reshaping the $23 Trillion Clean Energy Market.”
The only thing we have to do is subscribe to the Microcap Insider newsletter for $1,999 for the first year.
Included in the offer is a 90-day money-back guarantee, three bonus reports, weekly issues of the newsletter, and specific entry, exit, and target prices for every stock recommendation.
The Best Battery In Existence
The global shift towards renewable energy has exposed a critical issue.
A desperate need for effective energy storage.
Right now, the U.S. has about 23 gigawatts of energy storage capacity, but that’s not enough to transition to 100% renewable energy.
Not even close.
One research firm estimates that 900 gigawatts of energy storage capacity is required to reach this critical threshold.
This is why the global energy storage market is anticipated to grow by 2,630% over the next decade.
Tesla Electric has been a prime beneficiary of this trend, becoming Tesla's fastest-growing business unit.
However, besides their limited storage capacity, lithium battery-based energy storage solutions have another glaring problem…
They leak power, too.
As a result, they become worthless and need to be replaced every five years on average.
This is where a battery that solves ALL of these problems comes in.
The Forever Battery
The key ingredient behind the innovative, market-leading battery technology Alex teases is vanadium.
It's what every piece of steel in the world consists of and what makes it able to withstand extreme heat, pressure, and stress without breaking.
Additionally, vanadium-based batteries have a significantly longer life span, lasting up to 40x longer than their lithium battery counterparts that are used in cell phones and cars today.
This goes back to the design of vanadium batteries, which separates the components for energy storage (liquid tanks) and power generation (cell stack), and looks something like this:
This is in stark contrast to lithium-ion batteries, where both processes occur within the same cell.
Thus, vanadium batteries can release and store energy practically forever without losing their charge, and the water-based liquid in these batteries eliminates the risk of fire.
Combine these features and you get a constant supply of clean energy, accessible 24/7, every day of the year.
Alex believes vanadium batteries are “the ultimate solution to the world’s grid energy storage problem” and one little-known pure-play energy storage system provider is the way to get rich from it.
Revealing Alex Koyfman's Vanadium Battery Company
Several clues about the identity of this company are dispersed throughout the teaser, here is what they are:
- This small company is expanding rapidly with over 70 projects across 14 countries worldwide.
- The U.S. Department of Energy has committed nearly $40 million to deploying this company’s vanadium batteries nationwide and the UK’s Department for Energy Security partnered with this firm to build the largest grid-scale battery in British history.
- This small vanadium battery company trades for only $1.
Alex is referring to Invinity Energy Systems plc (OTC: IESVF).
- The company already has over 65 MWh of systems deployed or contracted for delivery across 70 sites in 15 countries.
- Invinity's vanadium batteries have been selected for six Department of Energy-funded projects across the U.S. and received £11 million in funding from the UK's Department for Energy Security to build the largest grid-scale battery ever manufactured in the UK.
- IESVF stock currently trades for just over $0.12, down from $0.58 a year ago.
Make 27,000% Gains in the Coming Years?
Alex's generous profit projection is based on the assumption of Invinity capturing a 3% share of the global energy storage market.
He says this could “generate the company annual revenue of $16.3 billion” and earn it a buyout by Tesla Electric.
How likely is this to happen?
Considering Invinity's fiscal year 2023 revenue totaled £22 million, it has a long way to go.
However, there is a silver lining here…
The manufacturer of utility-grade energy storage systems posted a huge 800% year-over-year increase in products shipped in 2023 and it also increased its global project pipeline by 170% over the same timeframe.
So things are headed in the right direction operationally.
Overall, the business is still losing money, but the majority of its 2023 loss relates to projects signed before 2022, with newer projects forecast to achieve broadly flat or small positive gross margins.
As of the latest operational update in May, Invinity is debt-free with £53 million cash in the bank and a healthy project pipeline.
Based on its current market cap of $55 million or £42 million, Invinity is selling for below cash, with no value assigned to the business as a going concern.
At its current burn rate, Invinity has at least two years' worth of operational runway left, before it has to go back to the market to raise debt or equity capital. This makes it a speculative moonshot, albeit one with some downside protection given the rock bottom, going-out-of-business valuation.
Quick Recap & Conclusion
- Angel Publishing Senior financial analyst Alex Koyfman says Elon Musk is not building an electric car company. Instead, his true ambition is to create a massive energy storage business, and one vanadium battery company building a “Tesla Killer Battery” stands in the way.
- This is because vanadium-based batteries are superior to Tesla Electric's lithium-ion batteries in almost every conceivable way and the small company being teased is a pure-play vanadium battery producer.
- All the information on it can be found in an investment report called “The Tesla Killer Battery: The Tiny Firm Reshaping the $23 Trillion Clean Energy Market.” The only thing we have to do is subscribe to the Microcap Insider newsletter for $1,999 for the first year.
- As promised at the outset, we revealed Alex's “Tesla Killer Battery” pick for free as Invinity Energy Systems plc (OTC: IESVF).
- Invinity is an interesting speculation. It is valued below the cash on its books, with a growing, albeit loss-generating energy storage system business.
Is Invinity stock a good risk/reward or a falling knife? Tell us what you think in the comments.