Late last year, Intel Corporation (INTC) tried to make itself relevant again…
Or, at the very least, it tried to add a few bucks to its share price after watching it slide by nearly 50% over the past year.
By completing the long-anticipated IPO of its self-driving car unit, Mobileye (MBLY).
Mobileye is a multi-billion-dollar company that makes specialty software and hardware for self-driving cars. Intel acquired it back in 2017.
Some would consider it one of the best ways to invest in the autonomous-vehicle boom.
But not me.
That’s because, as you’re about to see, I’m going to show you a smarter (and potentially, safer) way to play the emerging $7 trillion autonomous-transportation boom.
And to be clear, I can almost guarantee you won’t read about this strategy in any mainstream financial press.
Going Against the Grain
If you’ve been reading this newsletter for some time now, you know Matt and I don’t give a damn about following Wall Street convention or consensus.
You see, Mobileye’s stock has jumped by about 20% since its November IPO. And with the overall market returning just 6% in the same time period, that’s pretty impressive.
But while the rest of the market is rejoicing over Mobileye’s IPO news, I’m not impressed at all. You see, this is nothing more than a money grab…
Intel taking Mobileye public was simply meant to capitalize on one thing: taking advantage of runaway valuations for self-driving and electric-vehicle companies!
Consider: In 2017, Intel paid $15.3 billion for Mobileye. But today, it’s worth almost twice that much — close to $30 billion.
Mobileye lost $45 million in the last quarter alone, so you have to wonder how it could justify such a lofty valuation.
Well, you don’t need to be a math whiz or a stock-market guru to know that a company with negative earnings and a multi-billion-dollar market cap is way too rich.
Bottom line: You know who never wins when corporate America or Wall Street aim to cash-out? Everyday Americans like us!
And Intel’s IPO for Mobileye is no exception.
For more proof, look no further than the performance of other self-driving car and electric-vehicle stocks in recent history…
SPAC You Very Much
During much of 2020 and 2021, hundreds of special-purpose acquisition companies (SPACs) poured into the market.
Many focused on acquiring private companies in the transportation sector, which covers everything from self-driving technology to flying cars.
Scooping up shares of these SPACs might have seemed like a good way for investors to gain exposure to the burgeoning $7 trillion transportation trend.
In fact, Bloomberg once reported that SPACs represent a way for retail investors to “get in on growth stocks and, more often, a way to make a quick buck.”
Unfortunately, the reality is proving to be entirely different than the expectation.
Case in point: A Forbes analysis of 15 SPAC deals in the transportation space since the beginning of 2020 found that the majority are down more than 40%.
And the real stinkers, like Nikola Corporation (NKLA) and Lordstown Motors Corp. (RIDE), are down 72% and 87% from their IPO prices, respectively.
You get my point: the only parties making money on these deals are the original backers, not the new buyers.
To truly cash-in on self-driving cars and electric vehicles, we need to do something different:
We need to invest early — before these companies even go public.
Such opportunities don’t come around frequently. So when they do, we need to take advantage of them.
The good news is that Matt and I recently identified a tiny Silicon-Valley startup pioneering a groundbreaking new device…
And this device could enable wide-scale adoption of autonomous vehicles.
This is a pre-IPO company that could realistically become one of the most valuable players in this market, fetching anywhere from $1 billion to as much as $30 billion in a takeover.
That could hand early investors a profit of 5,934% — and possibly far more.
The only catch? You only have a few more days to take advantage of this opportunity before it closes, possibly forever.
If you’re interested, we recently compiled an in-depth research report on the company.