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Formula E: Inside the “Silicon Valley of Cars”

Matt McCall

For those of us who love cars, it’s easy to find out what the next generation will be like: Just check out the newest racecars. In the electric vehicle (EV) world, that means keeping your finger to the pulse of Formula E racing.

In the automotive world, major racing hubs are like the Silicon Valley of cars. Tech startups have their “incubators,” where companies like Airbnb and Dropbox (NASDAQ:DBX) were born. And car companies have the speedway.

In one brand-new racing league, the Electric Production Car Series, all of the entrants are Tesla (NASDAQ:TSLA) Model S. This car is not just another electric vehicle (EV) — it’s one of the greatest technological achievements of our age, with the ability to go from 0 to 60 miles per hour in just 2.5 seconds. And with even more power (and less weight), it becomes a top-of-the-line racecar.

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Formula E: Inside the "Silicon Valley of Cars"


Source: ElectricGT

But when it comes to racing electric vehicles, the big name is Formula E. These EVs are almost as fast as Formula One cars — reaching 180 miles per hour on the straightaways — but much quieter.

If you’ve ever been to an auto race – or even heard obnoxiously loud cars on regular roads – you know how strange that is. When electric cars race, no one needs earplugs. And at everyday speeds, the cars are practically silent. After all, instead of the gasoline engine, there’s just an electric motor.

So, in this arena, the batteries are the stars of the show!

In Formula E racing, the title sponsor is ABB Ltd. (NYSE:ABB), the Swiss industrial conglomerate — and a major player in Europe’s electric car infrastructure. So, naturally, the races are a chance for ABB to show off its tech. Outside the track, you’ll see a big display of ABB’s “Gen 2” racecar batteries.

In the first Formula E races, pit crews had to rush out and change the batteries halfway through. They lasted about 25 minutes.

The new batteries last for a full 45-minute race. And they’re pretty massive.

Formula E: Inside the "Silicon Valley of Cars"


Source: ABB Formula E, Youtube

To get the power they need — which is equivalent to 300 laptops or 4,000 cell phones! — these electric racecars devote half their weight (or roughly 750 pounds) to the battery.

And ahead of last weekend’s race in Red Hook, Brooklyn, one driver said, “We already know we’re going to overheat the batteries.”

Right now, even top-of-the-line racecars, sporting the latest and greatest electric-vehicle technology, rely on the very same battery that powers your iPhone or laptop: the lithium-ion battery.

Lithium-ion was originally developed for Sony camcorders back in the 1980s. And it was also in Samsung’s (OTCMKTS:SSNLF) infamous “exploding phones.”

Remember when flight attendants were confiscating them? When the Samsung Galaxy Note 7 would overheat, it caught fire. And everything from Teslas to HP laptops have had the same issue with their lithium-ion batteries.

Lithium-ion batteries have come a long way, but they are closing in on their limits.

So you can see why major car companies — and Formula E participants — like Nissan (OTCMKTS:NSANY), BMW (OTCMKTS:BMWYY), and Volkswagen (OTCMKTS:VWAGY) are investing in next-generation batteries.

This battery has:

  • Better energy density, making it smaller, lighter, but more powerful.
  • Shorter charging time due to fewer materials, which could produce a stronger current. One Chinese company, Enovate, is boasting a charge time of 80% in 15 minutes. That’s twice as fast as Tesla.
  • Better safety. Unlike what we use now, this battery does not have toxic, flammable liquid inside. In one memorable test, a battery startup called Ionic Materials shot its with a Remington .22. It took three bullets, did not catch fire, and kept working!

That’s all great news for racecar drivers. And Formula E could be the perfect testing ground for this new technology.

Volkswagen, which is already laying the groundwork to be fully electric by 2030, is working with a Silicon Valley startup to get these batteries into its cars and SUVs. The company is already one of the largest car manufacturers in the world, and if it can meet expectations I look for it to dominate electric vehicles, too — largely thanks to this new battery.

Audi, Porsche, and Mercedes all want these next-generation batteries in their fleets as soon as possible. So do General Motors (NYSE:GM), Ford Motor (NYSE:F), Toyota Motor (NYSE:TM), Honda Motor (NYSE:HMC), Mitsubishi Motors (OTCMKTS:MMTOF), and Hyundai Motor (OTCMKTS:HYMTF).

I could go on…

But as an investor, I’d rather own a pure play on the battery revolution.

Invest Where “Big Auto” is Dropping Major Cash

I often talk about “picks and shovels” investing. And that’s because if you look back at the 1849 Gold Rush, it was the folks supplying the picks and shovels who ultimately got rich.

Therefore, at Investment Opportunities, I’m recommending companies that supply this new technology — nicknamed the “Jesus Battery.”

Find out exactly what makes this battery so miraculous here.

Any competitors that have it will CRUSH Tesla, which may as well flush all the money it’s spending on lithium-ion batteries down the toilet.

If you ever wanted to invest in the coming electric car revolution, but weren’t sure how, THIS is your chance.

I know I do.

So I found a company that holds key patents.

Automakers like Toyota are relying on this tiny company for its electric cars. Yet the company is totally off the radar.

That makes now the right time to get in before everyone else. I’ve got a full presentation on the investment opportunity in this “Jesus Battery,” which you can view for free by clicking here.

Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you’re interested in making triple-digit gains from the world’s biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today.

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