How to play the next big thing: Rise of the Tesla Robotaxi

When a revolutionary new product is launched, what is the best way to invest in its success?

By buying that manufacturer’s stock…right?

Maybe not.

Consider: Since then Apple (AAPL) released the first iPhone in June 2007, Apple’s stock took off like a rocket. The value has increased by over 6,000% since then. But you know what stock propelled the iPhone even higher? Broadcom (AVGO) – a company that has since become a major Apple supplier. Its stock is up more than 16,000% since the launch of the first iPhone.

Another great example is adzehis (TSLA) Model 3. Many consider it to be the most transformative electric vehicle (age) – the car that really brought electric vehicles into the mainstream. And indeed, since its launch in July 2017, Tesla stock has absolutely soared, climbing about 1,500% more.

But to create such a world-changing new product, Tesla was using chips from another company, Nvidia (NVDA), to power the Model 3’s unique Autopilot technology. And guess what? Nvidia stock is up about 14,000% since the debut of this vehicle.

This pattern is persistent. Let’s follow it even further, back to the launch of the first personal computer (pc), IBMhis (IBM) model 5150, which arrived in August 1981. Since 1983, IBM stock itself has done well, rising more than 800% on the back of continued PC growth. But that original IBM PC was powered by an x86 architecture Intel (INTC) 8088 processor. And since 1983, Intel shares have outperformed IBM, rising nearly 4,000%.

You get the point. Sometimes the best way to play a revolutionary new product launch is to not buy the stock of the main company that makes the product.

Often, suppliers exceed.

And that’s why I want to turn your attention to the next batch of potential superstar “provider stocks.”

Robotaxi: The Transformational Release Coming This Week

See; in just a few days, Elon Musk—Tesla’s CEO and the world’s richest man—is set to unveil a new product that some believe could be as impactful as the iPhone, Model 3 or the first PC.

It’s called Robotaxi. And it promises to shock the world.

According to reports, the vehicle will be a fully autonomous car without any steering wheel or pedals. Early renderings showed it was likely to feature a two-seater interior with a large center console. Musk says it will also have the lowest cost per mile of any transportation option.

And it will supposedly be accompanied by its own ride-hailing app (like Uber’s) that will allow customers to take autonomous rides in Robotaxi.

Now, if this all sounds like science fiction, that’s because it was born out of it.

But that’s what Elon Musk could do next Thursday when he unveils Robotaxi. He could turn science fiction into reality. And that’s what’s so exciting about this upcoming debut.

Breakthrough product launches in the past have also turned science fiction into reality.

And as I pointed out above, then the magic happens.