Bes Stocks To Buy 2014, Best Stocks For 2014: 7/20/14

Saturday, July 26, 2014

The Tesla Supercharging Network Can Can Benefit This Chipmaker

Tesla Motors (TSLA) got all the affection that it deserved for turning out with something that is without a doubt in front of rivalry – the Model S extravagance sedan. Elon Musk made a strong move to start an EV organization, kept it ticking with assistance from almost a large portion of a billion in Energy Department loans, and has made the organization a profitable extravagance electric automaker. The Model S earned the highest ratings from Motor Trend and Consumer Reports.

While bulls and bears are battling it out on the Street, there are some hurdles that surely need to be overcome and the biggest of them is "reach uneasiness," or in simple words, the distance that one can blanket in a Model S.

To deal with "extent uneasiness," Tesla has plans set up for supercharger stations. When this network is set up, Tesla owners can drive from coast to coast with a "pit stop" of 30 minutes for at regular intervals of drive. This year, most of the metro areas in the U.s. furthermore Canada are wanted to be secured and before the end of 2014, it should spread the whole mainland.

Tesla intends to install a network that would permit a Model S to set out from Los Angeles to New York, Boston to Miami and Vancouver, British Columbia, to Phoenix, Arizona before the year's over. The organization has plans to blanket 80% of U.s. residents by the supercharger network before the end of 2014.

Analysts are also positive on Tesla's performance later on. Revenue is relied upon to develop an incredible 411% this year, as indicated by Yahoo! Money and 35% one year from now. However as Tesla moves into new markets such as Europe and China and diversifies its line up with the Model X SUV and the $35,000 Gen 3 car, these estimates should move higher. Also, expansion into more markets means additionally supercharging stations.

So Tesla will be busy building its supercharging network later on. Anyway, an alternate organization, which is usually not associated with cars, has also been making some moves to profit from the development of Tesla.

Qualcomm to profit

Qualcomm (QCOM) needs no presentation as it is the heading chip supplier for smartphone and tablets. It could be suitably called the "Intel of versatile." It supplies chips to all heading smartphone vendors across the globe and has been doing really well by outpacing competitors in that segment through its innovations. Besides, it also possesses various patents, which can help it create revenue through patent licensing.

Anyhow is Qualcomm joyful being just the Intel of versatile? Personally, I don't think so in the wake of perusing this article, and I would be taking a gander at an alternate reason in this article to see why Qualcomm's future is more than just portable.

In the wake of seeing the woes of Intel, which was vigorously subject to the PC market, Qualcomm is most likely feeling the need to diversify.

As such, less than two years back, the wireless giant forayed into the electric vehicle market. It obtained the assets of an organization from New Zealand, known as Haloipt, which had created a wireless electric car charging innovation.

Qualcomm doesn't fabricate any EV. That is something Tesla and others do. Notwithstanding, a press release issued few weeks back is important:

"Qualcomm Incorporated today published a multi-year concurrence with Formula E Holdings (FEH) to turn into an Official Founding Technology Partner of the FIA Formula E Championship, the new global championship offering dashing cars controlled exclusively by electric vitality. The assention will permit Qualcomm and FEH to showcase portable and Electronic Vehicle technologies universally through an invigorating sport and demonstrate how present and future generations everywhere throughout the world can profit from wireless, sustainable engineering on- and-off the track."

"As a pioneer in the portable space, Qualcomm will advise FEH in their quest to join new and more sustainable technologies into the dashing series. As a start, Qualcomm Halo Wireless Electric Vehicle Charging (WEVC) innovation will be adjusted to be fitted into the 2014/2015 FIA Formula E Championship safety cars so they could be wirelessly charged. The wireless charging system will be made accessible to the race cars from season two."

This suggests that Qualcomm is most likely taking a gander at the EV wireless charging business and perhaps was also crashed into this decision on once more of President Obama's arrangement of 1 million Evs before the end of 2015 in the U.s.

Bosch Automotive Service Solutions has effectively started offering $3,000 wireless chargers for Nissan Leaf and Chevy Volt owners. So Qualcomm is doubtlessly not going to be upbeat just being a player in the versatile figuring space. There another open door blending in the EV business sector and that is plugless charging and it would seem that Qualcomm is looking to profit from it.

That is the reason Qualcomm is aggressively moving into this business sector and it entered into yet an alternate concurrence with Drayson Racing Technologies last week. Qualcomm will give its wireless electric vehicle charging innovation to Drayson Racing, which will then fabricate related products available to be purchased to customers in the motorsport and auto sectors.

Qualcomm's Halo WEVC engineering is designed to empower wireless charging of electric vehicles through a cushion in the carport. It is an engineering that is relied upon to significantly enhance EV infrastructure and uptake. The organization is also creating forefront dynamic wireless charge progressing systems as well.

Conclusion

So it is truly clear that Qualcomm is not just a versatile player. The organization's moves into wireless EV charging look great and a tie up with Tesla later on shouldn't be discounted either. Qualcomm's development has been breathtaking recently as the organization developed revenue 35% in the previous quarter on a year over year basis and analysts anticipate that earnings will develop at a CAGR of 16.7% throughout the following five years.

Currently 0.00/512345

Rating: 0.0/5 (0 votes)

Subscribe via Email RSS Feeds

Subscribe RSS Comments Please leave your comment:
More GuruFocus Links

Latest Guru Picks	Value Strategies
Warren Buffett Portfolio	Ben Graham Net-Net
Real Time Picks	Buffett-Munger Screener
Aggregated Portfolio	Undervalued Predictable
ETFs, Options	Low P/S Companies
Insider Trends	10-Year Financials
52-Week Lows	Interactive Charts
Model Portfolios	DCF Calculator
RSS Feed	Monthly Newsletters
The All-In-One Screener	Portfolio Tracking Tool