Mr. Market is smiling upon electric car manufacturer Tesla Motors Inc (NASDAQ:TSLA). The company’s stock has had an incredible run-up in 2013 as Tesla has seemingly left years of losses in the dust by posting very impressive numbers in the most recent fiscal quarter.
Some investors are most likely seeking a more secure investment that can still ride on Tesla Motors Inc (NASDAQ:TSLA)’s success. I believe that the lithium industry is a great way to indirectly invest in Tesla. The lithium market will only increase if Tesla does succeed but would still be strong if Tesla Motors Inc (NASDAQ:TSLA) falls. The technological sector as a whole will most likely continue to demand more lithium over the long term, which adds appeal to investing in specific lithium companies as well as the lithium exchange traded fund (ETF) Global X Lithium ETF .
The heads and tails of the lithium coin
Based on the analysis given so far, it would appear that lithium would be a very strong, diversified investment. But, in many respects, the lithium industry is still in its formative years. Commodities such as gold, silver, oil, and lithium have been hurt by global economic headwinds. There has been quite some controversy over lithium ion batteries, both in Tesla cars as well as in The Boeing Company (NYSE:BA) jetliners. The industry is not fully mature yet. While there will be some great winners in the field, there will most likely also be some outright outrageous losers. This makes investing in individual lithium companies and companies reliant upon lithium a risky bet in today’s uncertain world. This risk is reflected in the price of Global X Lithium ETF:
This ETF is intended to reflect the performance of the lithium industry overall, so the downward trend is indicative of how the whole industry is performing.
Tesla and The Boeing Company (NYSE:BA) will help lithium
Tesla Motors Inc (NASDAQ:TSLA) and The Boeing Company (NYSE:BA) are two companies that continue to innovate and manufacture quality products. Both companies have issues, but both companies are in strong industries and use lithium in a way that benefits both consumers and investors.