1. Mandatory Research.
Researching is one of the key fundamentals step before any personal investor dip his or her foot in a piece of the company share with hard earn cash. Financial background investor works on the intrinsic value of the company. Some prefer to work around the historical events and core business value. Most of these information can be easily be found by simple search on Google or Bing.
Back in Mid January 2019, I was doing my research trying to work out the future value worth of two specific companies to prepare for investment deployment. I was not satisfied with my findings and information from the internet were not reliable. The only way I can get reliable source of information was to speak to the company itself! Then I had a brilliant idea.
2. Eureka Moment!
I stumble on their career page and I decided to apply for a job in that company . The master plan was to get an interview and extract information directly from their HR about their company future plans. There must be a reason why the company is suddenly looking to employ such vast amount of specialist in Europe.
The company is Tesla (TSLA) own by the super-smart Elon Musk who also built the PayPal empire. Now he is ambitious to take over the airspace for space and orbit travel. On land Elon is pushing for renewable energy to replace fossil fuels in homes and on the roads. Recently Elon Musk have launch their first sexy Roadster and self driving electric trucks. This news sends the shares beyond $350 per share. Tesla is still a favourite volatile shares (swings from $250-350) by day time traders to profit from. It takes a very strong heart for long-term investors to hang on to their seats. Tesla do not pay dividends and also not made any profits yet which’s sends the Earnings per share at Zero.
3. The Interview and the inside information
I actually sent my personal CV in the application as a Project Engineer job in London. To my surprise the HR personnel called me for a phone interview in the next 48 hours. During the interview I acted really keen to know about the company’s future and inside information. This is my summary below:-
Tesla Energy group are looking to expand five times the company size in Europe by 2020.
Tesla Energy group are keen to double in size by the end of 2018.
Tesla are heavily investing in UK, Germany and Netherlands to install their quick battery changing systems and quick chargers in all major cities.
These infrastructure are to prepare for the personal Tesla vehicles and self driving truck stop points on major motorways.
In the UK, Tesla are working exclusively with National Grid (NG) on this project.
Tesla Energy group are also looking to build multiple battery systems solar panels for homes and commercial areas which feeds back to the National Grid’s supply.
All Tesla project are exclusively only to National Grid. I tried to throw in Centrica and SSE but was clear they are not in the picture. This was because they has a successful story with a collaboration project in Island of Nantucket
If you were wondering if I got the Job…..and the answer is No. The job requires a national grid background and my decade of Oil and Gas experience was not good enough 🙂
From the information, I was excited about the prospect and delivery of Tesla infrastructure in Europe up to 2020. Tesla vehicles and self driving trucks will be roaming the roads everywhere. Not only that, National Grid seems to be a good partner to collaborate with.
4. My Personal Thoughts.
Personally, I do have shares with Tesla and National Grid already. This information gives me confident to invest more. National Grid is currently under 820GBX in this time of writing and provided over 5% dividends. With this expansion it looks like there is plenty of room for growth. The reason for National Grid Shares drop is due to two key reasons.
- The potential of the government capping and nationalising the electricity price and services.
- Interest rates rise causes utility stocks (bond like) to fall.
Investing in Tesla at $330-350 is very risky. Personally I would wait for the bears to take over and buy under $295-305.
I was please with my new research method to get information directly from the horse’s mouth. Will Tesla be the next household name like Amazon and Apple? Let’s wait till 2020. In the mean time I shall be buying shares for long term profits.