# The Broader Impact of Innovation

Innovation is often equated with financial gain for shareholders, yet it is essential to remember that true innovation also aims to enhance our world and can be rewarded accordingly. For instance, the significant rise in corn yields over the past few decades plays a crucial role in securing our global food supply. Similarly, advancements in fuel efficiency contribute to environmental preservation, while the expansion of oil and gas production within the U.S. ensures effective utilization of our natural resources and bolsters energy security.

## Key Players in the Innovation Landscape

Companies such as **Deere** (NYSE: DE), **Tesla** (NASDAQ: TSLA), and **Baker Hughes** (NASDAQ: BKR) stand out for their remarkable contributions to these transformative success stories. Their role in revolutionizing their respective industries makes them highly appealing to long-term investors looking for growth opportunities that align with sustainability and efficiency.

## 1. Deere: Driving Farming Productivity Forward

According to findings from the United States Department of Agriculture (USDA) and the United Nations Food and Agriculture Organization (FAO), U.S. corn yields rose impressively by 34% from 2002 to 2022. This achievement starkly contrasts with the drop in corn yields within the European Union, illustrating the significant advancements made. Notably, the U.S. accounts for nearly one-third of global corn production, significantly outpacing China (24%) and Brazil (10%) in yield outputs.

### Comparative Corn Yields

| Country | 2022 Corn Yield (Tonnes Per Hectare) | Increase Over 20 Years |
|————-|—————————————|————————-|
| U.S. | 10.88 | 34% |
| China | 6.44 | 32% |
| Russia | 6 | 119% |
| Ukraine | 6.35 | 80% |
| E.U. | 5.99 | -8% |
| Brazil | 5.2 | 70% |

*Data Source: USDA, FAO. Table by author.*

Though the reasons behind this productivity surge invite discussion, it’s clear that Deere’s innovative equipment and precision agriculture solutions contribute substantially to these results. Despite facing challenges in the short term from declining prices in key crops such as corn, wheat, and soybeans, the long-term outlook for Deere remains optimistic.

Furthermore, as other major corn-producing countries aspire to mimic U.S. yield levels, there’s a growing need for investment in precision, internet-enabled agricultural solutions. These advanced tools aid in managing spraying and fertilizing, along with optimizing planting and harvesting schedules. Deere’s integration of precision agricultural solutions within its hardware opens up expanded long-term growth avenues for both its equipment and software products.

## 2. Tesla: Leading the Charge in Fuel Economy

Elon Musk often goes underappreciated for his profound influence in transforming the image of American automobiles. Through his vision, Tesla has redefined the automotive landscape, shifting the perception from gas-guzzling vehicles to frontrunners in efficiency and superior quality.

Currently, Tesla commands a staggering 50.8% of the U.S. electric vehicle (EV) market share by volume. In stark contrast, its nearest competitor, **Ford Motor Company**, holds a mere 7.4%. Tesla’s dominance is underscored by its Model Y, which comprises a third of total U.S. EV sales, a testament to the high-quality, fuel-efficient vehicles the company has developed.

### Most Fuel-Efficient Midsize Vehicles

| Maker | Model (Midsize Cars) | Type | Combined City/Highway (Miles Per Gallon of Gasoline-Equivalent) |
|————–|——————————————–|—————————–|——————————————————————–|
| Hyundai | Ioniq 6 Long-Range RWSD (18-inch wheels) | EV | 140 |
| Tesla | Model 3 RWD | EV | 132 |
| Toyota | Prius Prime S.E. | Plug-in Hybrid EV | 127 |
| Mercedes Benz| EQE 4matic | EV | 96 |
| Audi | e-tron G.T. | EV | 85 |

*Data Source: U.S. Department of Energy. Table by author.*

Tesla’s early-mover advantage in the electric vehicle sector solidifies its position and the intent to sustain it is prominent through plans for massive volume growth. This strategy not only lowers unit production costs but also makes EVs more accessible and affordable.

While the buzz surrounding Tesla often highlights the potential for features like robotaxis and autonomous driving, the foundation of its growth is rooted firmly in its current lineup of electric vehicles, paving the way toward sustainable transportation.

## 3. Baker Hughes: Fueling Oil Production Growth

The explosion of U.S. oil production since 2016 has been extraordinary, positioning the U.S. as the leading oil producer globally. Much of this surge can be attributed to increased productivity in the Permian region, which spans Texas and New Mexico, driven by innovations in fracking, improved drilling technology, and enhanced resource management.

As a key oil and gas services provider, Baker Hughes plays an essential role in optimizing these advancements. Moreover, Baker Hughes possesses formidable potential within the liquefied natural gas (LNG) domain, with growth prospects set to advance further contingent on the approval of additional export capacity.

The medium-term growth for Baker Hughes spans oilfield services, gas technology services, and new energy innovations, helping to fortify the U.S.’s energy security while addressing the ever-evolving energy landscape.

## Leveraging AI legalese decoder for Improved Decision-Making

As innovation in industries grows, so do the complexities surrounding legal documentation, contracts, and regulations. This is where AI legalese decoder comes into play. By simplifying and clarifying legal jargon, this powerful tool assists businesses and investors in making informed decisions amid intricate legal landscapes. For instance, when considering investments in tech-driven companies like Deere or Tesla, using AI legalese decoder can streamline the understanding of agreements, compliance documents, and potential risks, enhancing investor confidence and comprehension of their partnerships.

### Exploring Investment Opportunities

If you’re contemplating investing $1,000 in Tesla or any of these innovative companies, it’s crucial to approach these decisions with a well-informed strategy.

The *Motley Fool Stock Advisor* analyst team has curated a list of what they believe are the **10 best stocks** to consider investing in at present— and notably, Tesla is not one of them. The companies on this list hold the promise of potentially substantial returns as they adapt and respond to evolving market dynamics.

By looking at past stock performance, such as Nvidia’s position on this list back on April 15, 2005—which would have yielded an impressive $710,860 from a $1,000 investment—it’s evident how crucial timing and choice are in investment success.

The *Stock Advisor* service not only provides insights into building a formidable portfolio but also offers guidance through regular updates from analysts and two fresh stock picks every month. Notably, this service has **more than quadrupled** the return of the S&P 500 since its inception in 2002*.

To see the evolving landscape of investment stocks remains pivotal for long-term financial growth.

*Data for Stock Advisor returns is current as of September 16, 2024.*

*Disclaimer: Lee Samaha holds no position in any of the mentioned stocks. The Motley Fool remains invested in and recommends Deere & Company and Tesla. For further disclosures, please refer to the company’s policy.*

*“3 Amazing American Megatrends (and 3 Great Stocks to Make Money From Them)” originally published by The Motley Fool.*