What do you make of that in and of itself seven hundred percent in a year over the past decade, chamath palihapatiya has solidified himself as one of the greatest investors in today's age. More recently, chamath detailed tesla's plan to turn the world upside down with its up-and-coming energy business. In this video, i will cover exactly what chamath is referring to and show you why chamath believes that tesla's trillion dollar weapon is on the verge of disruption. Welcome to cass games academy if you're new to the channel, please consider subscribing for more content like this and let's get right into it, while some still think tesla is a car company.

I'm sure a lot of us know that tesla is an energy business with the car market happening to be the first market for disruption. Today's valuations of tesla stock are already pricing in tesla's future domination in the car market, yet similar to tesla a few years ago. With cars, many still don't see the opportunity with tesla energy. Now it is true that tesla's energy business is relatively small right now, but so was tesla's car business in the early 2010s.

Today, tesla has practically unlimited cash flow at these valuations, and its recent moves are showing that tesla energy is about to expand and when it does expand, the expansion will be fast. Chamath described this in his most recent interview on cnbc, traditional energy is about to be disrupted by tesla. Just like how traditional auto was. I think the reality is that tesla is a distributed energy business right.

They are figuring out how to harness energy, how to store it and then how to use it in a way to to allow humans to be productive. Cars are a manifestation, but you know solar panels are as well power walls are as well, and i'm telling you right now, scott, the big disruption that's coming is to power utilities. There are trillions of dollars of bonds of capex, of value sitting inside the energy generation infrastructure of the world that is going to go upside down, and when that goes, pear-shaped, tesla will double and triple again. Tesla's entrance into cars has definitely been quite impressive.

However, the car market easily gets dwarfed by the size of the utility market. If you don't believe me, allow me to show you some numbers. The automobile market in the us in 2021 is estimated to be at 80 billion dollars. 80 billion dollars, of course, is not something to overlook, but this isn't even close to the size of the utility business.

In 2021, the utility market size is estimated to be over 800 billion dollars. This is the sector that is about to be disrupted. It has created the world's richest people and the world's most valuable companies, and that is no exaggeration. In 2018, saudi aramco had revenue of over 400 billion dollars that same year, the royal dutch shell had 396 billion dollars in revenue and the china national petroleum corporation had 392 billion dollars in revenue, and we can't forget about john d rockefeller, who, when adjusted for inflation, Had a peak net worth of 418 billion us dollars, elon musk is the modern-day rockefeller.

Rockefeller gained enormous power in the railroad industry which helped them transfer oil from place to place. Today. Elon looks to go beyond this by dominating today's age of transport, which includes rockets through spacex autonomous driving vehicles through tesla autonomous transport to the boring company and even a rumored electric airplane to be coming from tesla tesla's. Already existing massive capital base will allow him to ramp up research and development for the energy business and enter what some will call.

The big boy business long term. Elon musk thinks that tesla energy will become the same size as its automotive business, and this isn't a far-fetched claim. Tesla's energy business is and will be a major weapon against traditional energy similar to the eevee revolution. There are some obvious parallels: if the traditional energy companies don't adopt solar technology, then those companies will have no choice but to go bankrupt over the long term enough.

I think long term tesla energy will be of roughly the same size as tesla automotive. So i mean the energy business collectively is bigger than the automotive business, so you say, like you know how big is the energy sector bigger than automotive, now that we see the potential with the market? Let's take a look at tesla's plan for dominating the utility business and recent developments in the space ever since tesla's acquisition of solar city in 2016. Many have been waiting for tesla energy to step up its game. However, during the crazy ramp up of the model 3 in 2019, elon musk was forced to transfer the majority of the tesla solar workers to the model 3 program.

He stated that if this move was not done, tesla would have gone bankrupt. If i did not take everyone off of solar and focus them on the model 3 program to the detriment of solar, then tesla would have gone bankrupt. So i took everyone from solar and said. Instead of working on solar, you need to work on the model 3 program and, as a result, solar suffered, as you would expect.

After many years of developing tesla's automotive sector elon musk is now shifting tesla's focus to both the energy and automobile sectors. From an investment standpoint, it's not far-fetched to say that solar is the future. After all, prices on solar panels will continue to decline similar to the eevee transition. This was evident when tesla cut the price of its solar panels once in june of 2020 and then again in july of 2020.

Additionally, in september of 2020 tesla cut its solar roof price in preparation for a massive deployment expansion. If you haven't heard of the solar roof, it's essentially a roof built out of solar panel units. The design of the solar roof is stunning and has been shown to be cheaper than getting a premium roof in solar panels. Now, after tesla's solar price cuts, it was clear that elon musk was dedicated to tesla's rapid solar expansion.

Tesla even claims that its average system size was now one third less expensive than the industry average, and ensured that, with the addition of its lowest price guarantee policy, and not surprisingly, this caused tesla's solar deployments to increase dramatically in q3 of 2020 tesla's solar deployments. More than doubled to 57 megawatt hours compared to the previous quarter, solar roof deployments alone, almost tripled sequentially elon musk was hyped at the potential, as he stated, i think, a future where we've got beautiful roofs, generating energy that is tough and resilient and better in every Way than a regular roof and alive with energy, that's the future. We want solar roof is a killer product. This will become obvious in 2021.

Elon wasn't joking about tesla's plans for the solar roof. More recently, on january 5th, 2021 tesla began posting a dozen of new job postings for solar roof installers. This includes phoenix arizona, los angeles, california, dallas texas, orlando florida and many more tesla also announced that it will partner with other companies to install solar roof tiles. In order to deploy the product faster overall, it's clear that the solar roof is on the path to solidifying itself in the solar industry.

Additionally, tesla has become the face of solar panels with its recent price cuts and expansion. Yet this isn't the only industry that has been making huge strides, the tesla mega pack is quickly becoming the flagship stationary energy storage battery system for utility companies. If you haven't heard of the mega pack, it's essentially a huge battery system that helps utility companies store energies. For times of peak demand, traditionally peaker power plants are used to create energy.

During the times of peak demand for energy, these power plants are extremely inefficient and also emit. A large amount of carbon tesla looks to replace these peaker power plants by using battery storage to store energy during times of low demand and sell that energy during times of high demand. As you can see in this graph, there are certain points of the day where not much energy is used, which is called the valley during this time. Energy is cheap and this allows utility companies to fill up the tesla mega pack with energy during the morning and evening peaks energy is expensive, which allows utility companies to sell the energy stored in the mega pack for high.

Essentially, the tesla mega pack is a buy low, sell, high storage. This is fully automated using tesla software called the auto bidder. Now, over the past few months, the tesla mega pack has been gaining massive traction in the utility sector. The company is partnered with many large corporations such as pg e and hawaiian electric.

In the third quarter of 2020, we saw a huge jump in mega pack deployments similar to solar panels and evs. The eventual widespread use of the tesla mega pack is almost a guarantee. Additionally, the tesla powerwall, which is built for storing energy in homes, has been a major success for the company. This is the type of technology that chamoth is betting.

On many institutional investors, don't seem to be catching on to how large a potential the tesla mega pack has as retail investors, we can take advantage of the close-minded type of mentality that some institutional investors have, while tesla may be overvalued in the short term. The eventual acceleration of tesla energy will ultimately provide much more value than the automobile sector. Let me know what you think about tesla's trillion dollar potential in the energy industry. Do you think tesla's products will become the flagship energy products soon? If you enjoyed this video, please hit the like button and subscribe and i'll see you in the next one.