Avoid Tesla Stock and Buy This Car Company Instead

Tesla stock shot up nearly 2% after CEO Elon Musk confirmed his company was finally hitting production goals for its vaunted Model 3 sedan.

But when it comes to cashing in on the global auto market, we're steering clear of Tesla and piling into another car stock…

Last month, Tesla Inc. (Nasdaq:�TSLA) announced that the company's Los Angeles factory had managed to produce 5,000 Model 3 cars in five days.

In an email sent to Tesla employees the afternoon of the achievement, Musk stated that be believed Tesla has finally become a "real car company."

Wall Street certainly agreed – following the news, investors poured money into what's widely been hailed as the car manufacturer of the future.

However, this attitude is missing the bigger picture – and the more substantial profits.

You see, Tesla's real profit potential isn't in electric cars. In fact, it isn't in auto manufacturing at all…

Tesla Is the Energy Company of the Future

As Money Morning�Chief Investment Strategist Keith Fitz-Gerald points out, Tesla's real profits lie in the company's ambition to become "more than a car company."

According to Keith, the fact that Musk "is involved in so many things is precisely the attraction here and why savvy investors would be wise to pay attention. Musk wants to�redefine the electric grid�and, with it, the world's energy supply."

Life-Changing Profit Potential: One tiny firm is rapidly developing the parts for a game-changing technology – and the gains from its stock, trading for less than $10, could turn every $1,000 invested into $4,719. Learn more…

In other words, Tesla's future lies in the design, production, and distribution of an international energy company.

And Tesla is already aggressively pursuing its future as an energy provider. In 2015, Tesla announced the launch of the Tesla Powerwall, a home battery product. Tesla describes the Powerwall as a "rechargeable lithium ion battery with liquid thermal control" that can last nearly two days during a power outage.

In May 2016, Tesla began accepting preorders for "solar tiles" – solar panels that could be installed as roof tiles on homes.

This was followed by Tesla's acquisition of one of Musk's other ventures, Solar City, an industrial manufacturer that specializes in the production of solar energy devices. Over the last two years, Tesla has used Solar City's manufacturing base to increase production of the company's solar panels and make large-scale distribution a reality.

A recent report from Bloomberg revealed that Tesla's efforts are paying off – Tesla recently partnered with Home Depot to install 800 selling spaces in the home improvement company's stores. The areas, staffed by Tesla employees, will demonstrate the daily capabilities of Tesla's solar panels and the Powerwall to prospective customers.

These energy developments not only overshadow Tesla's breakthroughs in the auto industry – they demonstrate that the company's future is in revolutionizing how people access and consume energy.

In fact, Tesla's big win amounted to producing 5,000 vehicles over five days, but serious automakers achieve that level of production in mere hours.

And one of these companies is on the verge of redefining the American auto industry and making a killing in the process.

It's a classic American car company that's investing over $1 billion into driverless technology and artificial intelligence (AI).

It's taking on the largest auto market in the world – China's 22.8 million annual sales – with a lineup of five new car models for 2018 in a plan to boost revenue from China by 50%.

Plus, it currently boasts a perfect Money Morning�Stock VQScore�� of 4, indicating that it's a prime buy for the savvy investor.

Here it is…

Join the conversation. Click here to jump to comments…

Profit growth set to boom again by more than 20%

The last earnings season was all about raising expectations for earnings on the back of corporate tax cuts, share buybacks, and a synchronous global economic expansion.

A lot has changed in the last three months, according to Nick Raich of Earnings Scout. "Last earnings season it was all about raising estimates. This earnings season, all we want to see is companies maintain their EPS estimates."

That may seem like a real downgrade in expectations, but Raich disagrees. Second quarter earnings for the S&P 500 are expected to increase by 20 percent, not far off the first quarter's 26 percent growth. And estimates of 23 percent and 20 percent growth for the third and fourth quarter have not dropped at all.

Despite all the worries about trade wars, companies still seem comfortable with the earnings guidance they gave earlier in the year. "If they are comfortable with that, that is bullish for stocks," Raich told CNBC.

Still, you have to marvel at the strength of the market. Stocks have shrugged off almost everything. Just look at the rally on Monday. Stocks surged on the absence of any bad headlines about trade wars. Given that global trade has been the main sentiment mover in the last three months, and that the heated rhetoric has not really abated, just quieted down, you would think the markets would have a much more muted reaction.

This is obviously dangerous territory. The market has come to believe that cooler heads will prevail on global trade. Christine Short, who has watched this all unfold for Estimize, believes it makes sense. "Everyone knows global trade is good for earnings, and to get into a global trade war means that every country is going to shave a bit off GDP growth, and that many companies are going have to lower earnings growth, and no one wants that," she told CNBC.

It goes beyond trade, however: The market is pricing in a lot of good news.

1. The Fed: While global growth estimates are marginally lower, strong U.S. growth estimates are little changed, and the markets seem to believe they will stay that way. With inflation still relatively muted this has put the Fed is in a "dovish box" that will prevent it from aggressively raising interest rates.

2. Growth over Value: Traders believe that technology �� the mother of all growth stories �� will continue to put up outsized gains. With technology at a 25 percent weighting in the S&P 500, far and away the biggest sector, and again expected to grow earnings 25 percent in the second quarter, "You need tech to keep growing," Short said. She thinks tech will likely deliver, and not just FAANG names. Smaller companies in the enterprise space like Hubspot, Zendesk, Workday and Salesforce have also been doing well.

3. Shrugging off higher costs: The market will occasionally get into a mini-funk over higher commodity costs, or rising rates, or a higher dollar, but it has not yet translated into prolonged negative trading action.

What could derail this rosy scenario? For Nick Raich, it will all depend on corporate guidance: "If we see earnings estimates for the third and fourth quarter drop below 20 percent growth, that would be bearish in my mind," he told CNBC.

China's Tencent turns to US for IPO of its music business

One of China's top tech companies plans to list its online music business in the United States.

Tencent (TCEHY) said in a statement Sunday that it will sell shares in the music unit on a US stock exchange. It didn't provide a time line or details on the size of the proposed stock offering, but recent reports have suggested the move could value Tencent Music at more than $30 billion.

The company didn't respond to requests for further comment.

A valuation on that scale would put Tencent Music on a par with global music streaming service Spotify (SPOT), which went public in New York in April. The two companies already own stakes in each other after a share swap in December.

Hong Kong-listed Tencent, which has a market value of around $480 billion, owns an array of internet businesses, including WeChat, a multipurpose messaging app that has more than one billion users.

Tencent Music dominates the music streaming market in China through its QQ Music, KuGou and Kuwo platforms. It has around 600 million users, although only about 15 million of them are paying subscribers.

Tencent's QQ Music, Kugou and Kuwo services seen on the screen of an iPhone.

It has exclusive deals with Sony Music, Universal Music Group and Warner Music Group. Under the arrangement, Tencent gets to decide which songs rivals can stream.

"Tencent has an overwhelming market share in a growing business," Travis Lundy, an analyst at investment research platform Smartkarma, wrote in a note Monday. He added that an IPO would give Tencent Music new funds that it could use to buy more content for its platforms.

Tencent shares were up 2.5% in afternoon trading in Hong Kong.

The planned IPO of Tencent Music comes amid a flurry of anticipated listings for Chinese tech companies in the coming months.

Smartphone maker Xiaomi made its trading debut in Hong Kong on Monday after raising $4.7 billion in an IPO.

-- Sherisse Pham contributed to this report.

Vsync (VSX) Trading 2% Higher Over Last Week

Vsync (CURRENCY:VSX) traded up 0.5% against the US dollar during the 1 day period ending at 13:00 PM ET on July 7th. Vsync has a total market cap of $1.21 million and $978.00 worth of Vsync was traded on exchanges in the last 24 hours. During the last week, Vsync has traded 2% higher against the US dollar. One Vsync coin can now be purchased for approximately $0.0075 or 0.00000115 BTC on cryptocurrency exchanges including CoinExchange and Trade Satoshi.

Here’s how other cryptocurrencies have performed during the last 24 hours:

Get Vsync alerts: Bitcoin Diamond (BCD) traded up 57.1% against the dollar and now trades at $3.09 or 0.00047076 BTC. Stratis (STRAT) traded 3.9% lower against the dollar and now trades at $2.54 or 0.00038812 BTC. NavCoin (NAV) traded 0.9% lower against the dollar and now trades at $0.44 or 0.00006713 BTC. CloakCoin (CLOAK) traded 1.6% lower against the dollar and now trades at $4.18 or 0.00063740 BTC. DeepOnion (ONION) traded 3.6% lower against the dollar and now trades at $0.66 or 0.00010074 BTC. Stealth (XST) traded 4.7% lower against the dollar and now trades at $0.19 or 0.00002866 BTC. Kore (KORE) traded down 2.8% against the dollar and now trades at $1.58 or 0.00024050 BTC. Bitcoin Plus (XBC) traded down 1.4% against the dollar and now trades at $25.89 or 0.00395034 BTC. Elite (1337) traded 1.1% higher against the dollar and now trades at $0.0001 or 0.00000001 BTC. BlitzPredict (XBP) traded 2.4% lower against the dollar and now trades at $0.0039 or 0.00000060 BTC.

Vsync Coin Profile

Vsync is a PoW/PoS coin that uses the X13 hashing algorithm. Its genesis date was August 27th, 2017. Vsync’s total supply is 168,332,594 coins and its circulating supply is 160,559,294 coins. Vsync’s official Twitter account is @VsyncCrypto. Vsync’s official website is vsync.pw.

Vsync Coin Trading

Vsync can be bought or sold on these cryptocurrency exchanges: Trade Satoshi and CoinExchange. It is usually not presently possible to buy alternative cryptocurrencies such as Vsync directly using U.S. dollars. Investors seeking to trade Vsync should first buy Ethereum or Bitcoin using an exchange that deals in U.S. dollars such as Changelly, GDAX or Gemini. Investors can then use their newly-acquired Ethereum or Bitcoin to buy Vsync using one of the exchanges listed above.

new TradingView.widget({ “height”: 400, “width”: 650, “symbol”: “VSXUSD”, “interval”: “D”, “timezone”: “Etc/UTC”, “theme”: “White”, “style”: “1”, “locale”: “en”, “toolbar_bg”: “#f1f3f6”, “enable_publishing”: false, “hideideas”: true, “referral_id”: “2588”});

America Movil SAB de CV ADR Series L (AMX) Trading Up 5.3%

America Movil SAB de CV ADR Series L (NYSE:AMX)’s share price was up 5.3% on Thursday . The stock traded as high as $17.37 and last traded at $17.33. Approximately 4,045,750 shares changed hands during trading, an increase of 52% from the average daily volume of 2,666,568 shares. The stock had previously closed at $16.46.

Several equities analysts recently weighed in on AMX shares. Zacks Investment Research upgraded America Movil SAB de CV ADR Series L from a “sell” rating to a “hold” rating in a research report on Monday, March 12th. Goldman Sachs Group started coverage on America Movil SAB de CV ADR Series L in a research report on Tuesday, April 3rd. They issued a “buy” rating and a $25.00 price objective on the stock. Deutsche Bank began coverage on America Movil SAB de CV ADR Series L in a research report on Monday, June 25th. They issued a “hold” rating and a $18.00 price objective on the stock. Finally, ValuEngine downgraded America Movil SAB de CV ADR Series L from a “buy” rating to a “hold” rating in a research report on Wednesday, May 9th. Three research analysts have rated the stock with a sell rating, three have assigned a hold rating and six have assigned a buy rating to the stock. America Movil SAB de CV ADR Series L has an average rating of “Hold” and an average target price of $20.13.

Get America Movil SAB de CV ADR Series L alerts:

The company has a market cap of $57.25 billion, a P/E ratio of 25.96, a P/E/G ratio of 1.16 and a beta of 0.51. The company has a quick ratio of 0.72, a current ratio of 0.80 and a debt-to-equity ratio of 2.79.

America Movil SAB de CV ADR Series L (NYSE:AMX) last announced its quarterly earnings results on Wednesday, April 25th. The Wireless communications provider reported $0.29 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.21). The firm had revenue of $13.57 billion during the quarter. America Movil SAB de CV ADR Series L had a net margin of 1.09% and a return on equity of 10.38%. equities analysts predict that America Movil SAB de CV ADR Series L will post 0.9 earnings per share for the current fiscal year.

Institutional investors have recently bought and sold shares of the business. Signaturefd LLC purchased a new stake in shares of America Movil SAB de CV ADR Series L during the 1st quarter valued at $119,000. Alpine Woods Capital Investors LLC purchased a new stake in shares of America Movil SAB de CV ADR Series L during the 1st quarter valued at $139,000. Lake Street Advisors Group LLC purchased a new stake in shares of America Movil SAB de CV ADR Series L during the 4th quarter valued at $209,000. Pin Oak Investment Advisors Inc. purchased a new stake in shares of America Movil SAB de CV ADR Series L during the 4th quarter valued at $212,000. Finally, CIBC World Markets Inc. purchased a new stake in shares of America Movil SAB de CV ADR Series L during the 1st quarter valued at $229,000. Institutional investors own 7.63% of the company’s stock.

About America Movil SAB de CV ADR Series L

Am茅rica M贸vil, SAB. de C.V. provides telecommunications services in Mexico and internationally. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services. It also provides data services, such as Internet access, messaging, and other wireless entertainment and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and data center, data administration, and hosting services to residential and corporate clients, as well as residential broadband services.