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Avatar of Jack Collins

by Jack Collins

Tesla Relief in Peak Oil 2.0

August 19, 2013 in Electric Vehicles, EV News, Oil, Tesla

Photo courtesy of Tesla

Photo courtesy of Tesla

Tesla stock (TSLA) closed at $144.90 per share, up 2.04% on the day, which was a great performance considering that the overall market was down.  The Dow finished at 15,011, off 71 points.  Rising interest rates, high oil prices and weakening Asian currencies were giving investors indigestion.  However, there is relief on the horizon, the new electric era.

Tesla tweeted 8-17-13: “Model S has taken on the Autobahn!  Our first Swiss deliveries have begun.”  As Tesla expands around the world, the applause is likely to get louder.  High oil prices are taking a toll on Asia, most particularly India.

Is there hope for India?

India’s currency, the Rupee, has fallen sharply in recent trade to 63.13 to the US Dollar.  The country will likely be facing tougher inflationary troubles in the months ahead, especially if the currency continues to slide as it did last night (down 2.37%, according to Bloomberg Asia-Pacific currencies).  The Indian government has to restore confidence by addressing the causes of its national trade deficit.  Most importantly, India must wean itself off oil.  The number one priority of the country should be building electrified mass transport.  With a population of approximately 1.237 billion (2012 World Bank), India has a big energy problem requiring massive investment.

Over the long-term, the currency markets are going to punish, one by one, the weakest oil importihttps://evnewsreport.com/files/tag/ng nations.  this is round two of peak oil 2.0, the peak oil sharing globe.  there are countless efforts around the world on developing and implementing new energy technologies to stave off peak oil.  india does not need to look far for answers; there are abundant resources online (sharing economy).  Why not build a Hyperloop?  India needs to be bold.

WTI oil is trading around $107, and Brent is near $110.  Weakness in India has already spread to other Asian markets, causing most Asian currencies to decline.  At the same time, the US Dollar is being supported by rising interest rates.  The 10 year US Treasury yield has risen to 2.88%.

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Avatar of Jack Collins

by Jack Collins

Tesla, Federal Reserve, Hyperloop and Oil

August 15, 2013 in Electric Vehicles, EV News, Hyperloop, Oil, Tesla

The US stock market took a dive due to interest rate concerns.  The Dow closed down 225 points as interest rates rose; the 10 year Treasury yield is now 2.77%.  Digesting interest rate concerns will be a tough slog for the stock market moving forward.

Hyperloop design Image courtesy of Tesla

Hyperloop design
Image courtesy of Tesla

Tesla stock (TSLA) eked out a gain despite the slump on Wall Street.  TSLA closed at $139.67, up .22% on the day.  With rail projects being considered across the country, the Hyperloop must have caught the attention of many state and city transportation professionals.  It would not be that surprising to hear of interest to trial the technology outside of California.  After all, the Hyperloop could prove to be an enormous economic boost for states and cities willing to construct it.  California should consider itself lucky that Mr. Musk would even consider the LA – SF Hyperloop.

The oil market rose again today due to continued unrest in the Middle East.  News reports and photos from Egypt were disturbing with many dead from various clashes.  Bloomberg reported: “At least 525 people died, including police, and more than 3,700 were injured in yesterday’s violence, according to official tallies.  The Muslim Brotherhood, which backs Mursi and led the protests, said the death toll was many times higher.”  Brent oil has now climbed over $111 per barrel.

China is expected to be the largest net oil importer at the end of this year, according to the US Energy Information Administration, which necessitates that China have a strong currency to pay for the oil.  Certainly, China is not going to rely on the US Dollar forever.  When the Yuan freely floats on international currency exchanges, economic power will tilt to Asia.  China did sell US Treasuries in June.  Bloomberg reported: “China’s stake dropped by $21.5 billion in June, or 1.7 percent, to $1.276 trillion, according to Treasury Department data released yesterday.”

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Avatar of Jack Collins

by Jack Collins

Tesla and Musk Hyperloop, Oil Transition

August 12, 2013 in Electric Vehicles, EV News, Hyperloop, Tesla

Image courtesy of Tesla

Image courtesy of Tesla

Tesla stock (TSLA) opened below $150 and has been weak in morning trade.  The stock market as a whole has been edgy in recent days concerning the possibility of rising interest rates after the Federal Reserve starts tapering its stimulus.  Regardless, Tesla remains the great electric hope in a world that uses over 91 million barrels of oil a day (IEA).  Unfortunately, Tesla’s auto sales are still only a drop in a bucket in comparison to the approximate 80 million worldwide annual auto market.

WTI oil is trading slightly above $106 per barrel, which is a rather modest price considering China’s record oil imports in July.  In addition, WTI should be trading closer to parity with Brent since oil inventories at Cushing have been drawn down below 40 million barrels (EIA).  Brent oil is trading between $108 – $109.  The fourth quarter is the heaviest oil demand quarter due to the cold (heating oil fuels) in the Northern Hemisphere, so demand pressure will increase in the coming months.

How should the world transition from oil? 

Mr. Elon Musk plans to reveal his Hyperloop concept today.  As the CEO of Tesla Motors, Mr. Musk is no stranger to the oil and climate dilemmas of the world.  He may feel increasing pressure to work on his Hyperloop idea due to his own convictions.  In Europe, China and Japan, rail networks are already quite extensive and modern in comparison to the United States.  Mr. Musk has proposed that the US initiate a new form of transport, Hyperloop, which he believes would be significantly faster and cheaper than high-speed rail.

About EV News Report

EV News Report is a news and information service on electric vehicle news with a focus on the campaigns, events and star leaders shaping the EV revolution.

Electric vehicles are driving the change to a clean green sustainable future for the United States and the world. Tesla CEO Elon Musk and other EV stars have launched a revolution. At EV News Report, you will see daily updates on the new electric era, including Tesla news, LEAF news, and all the leading players in the electric transportation movement.

Plug-in to the electric car / electric transportation revolution by creating a free account with EV News Report and join Poll Vote to discuss your ideas with other EV enthusiasts. We’re just getting the electric motor started. Let’s change the world…

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Avatar of Jack Collins

by Jack Collins

Tesla Cleaning the Air

July 31, 2013 in Electric Vehicles, EV News, Oil, Tesla

Normal, IL, Tesla Supercharger station Photo courtesy of Tesla

Normal, IL, Tesla Supercharger station
Photo courtesy of Tesla

Tesla CEO Elon Musk wants the company to have a 25% gross margin average in Q4.  This gross margin goal is independent of any zero emission vehicle credits (ZEV revenue).  Tesla plans to clear the air in more ways than one.

This zero emission Model S (photo right) is charging for free in an enclosed lot in Normal, IL.  The owner of this vehicle can charge at any Supercharger station for free, for life!

Tesla has initiated the development of its European Supercharger network in Norway.  With petrol prices approximately double the United States, Europe is obviously a great long-term market for Tesla.  People can quantify free, and there is no shortage of people that want to be free of gasoline.

European leaders are well aware of the limits of oil supply.  Oil field declines in the North Sea have been highly publicized in Europe.  In response, the Norwegian government devised some of the most aggressive electric vehicle adoption policies in the world, and this is despite the country being a major oil exporter.  Of course, Tesla management is thinking long-term as well, with plans to sell a mass-market electric car, the generation III, in a few years.  However, there is a great landmass and ocean between the Fremont factory and the shores of Europe.  If the company is confident about the generation III timeframe, it would be best to start planning ahead.

Tesla stock (TSLA) closed today at $134.28 per share, up 1.93%.  The stock hit a new record high yesterday at $137.49.

The US Energy Information Administration weekly petroleum inventory report showed that Cushing Oklahoma oil inventories dropped to 42.1 million barrels, which helped lift the price of WTI oil over $105 per barrel.  WTI should trade more in-line with the price of Brent (currently $107-$108).  US domestic crude production was approximately flat in the report, a little north of 7.5 million barrels a day.

High oil prices are being maintained despite economic weakness in China (#2 oil importer) and India (#4 oil importer).  The US Department of Energy should greatly increase its efforts to educate the American public about the benefits of electric vehicles.

About EV News Report

EV News Report Poll: Can India halt the fall in the Rupee?

EV News Report Vote: Which future transport do you want?

EV News Report Poll: Are EVs at a tipping point?

EV News Report is a news and information service on electric vehicle news with a focus on the campaigns, events and star leaders shaping the EV revolution.

Electric vehicles are driving the change to a clean green sustainable future for the United States and the world. Tesla CEO Elon Musk and other EV stars have launched a revolution. At EV News Report, you will see daily updates on the new electric era, including Tesla news, LEAF news, and all the leading players in the electric transportation movement.

Plug-in to the electric car / electric transportation revolution by creating a free account with EV News Report and join Poll Vote to discuss your ideas with other EV enthusiasts. We’re just getting the electric motor started. Let’s change the world…

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Avatar of Jack Collins

by Jack Collins

Tesla Model S Production 500 Week! Oil $108 A Barrel!

July 18, 2013 in Electric Vehicles, EV News, Model S, Oil, Tesla

Photo courtesy of DOE

Photo courtesy of DOE

The Tesla Fremont factory is working hard to turn back the oil tankers.  

Tesla is now producing 500 Model S cars a week, according to VP of Manufacturing Gilbert Passin.  In a Bloomberg interview with Ashlee Vance, Mr. Passin stated confidently: “Now, we’re actually 500 cars a week.”  On an annualized basis, this would be 26,000 units.  This is great news.  However, Tesla has a lot of work ahead to satiate worldwide demand for the Model S.  Tesla CEO Elon Musk has roughly estimated global Model S demand to be 50,000 units/yr.

Electric car sales should see more traction.  The price of a barrel of WTI oil is currently $108, and Brent is near $109.  Current oil prices will undoubtedly lead to more media and consumer attention for electric cars.  Gasoline inventories remain elevated, but world oil demand is expected to outstrip supply in Q3 and Q4 (IEA Oil Market Report).  If, there is a major oil disruption, oil could spike to $200 a barrel.  What could stop it?  An economic bust.

The spread between WTI and Brent oil has diminished to pennies.  Cushing Oklahoma oil inventories are normalizing (EIA: 46.1 million).  Obviously, oil infrastructure has adjusted to the growth of oil supply from the shale oil fields.  US production was up again in the latest EIA weekly oil inventory report to almost 7.5 million barrels a day.  It is important to keep in mind that shale oil production is a pittance in comparison to world oil demand.

If the US economy is going to grow, it needs to change.  Americans need to dump the pump and go electric.  The United States is the biggest abuser of the antiquated oil economy, 18.66 million barrels a day (EIA 2013 est.).  The oil tankers have to be reversed.

About EV News Report

EV News Report is a news and information service on electric car news with a focus on the campaigns, events and star leaders shaping the electric car revolution.

Electric vehicles are driving the change to a clean green sustainable future for the United States and the world. Tesla CEO Elon Musk and other EV stars have launched a revolution. At EV News Report, you will see daily updates on the happenings of the industry, including Tesla news, LEAF news, and all the leading EV industry players.

Plug-in to the electric car revolution by creating a free account with EV News Report and join the forums to discuss your ideas with other EV enthusiasts. We’re just getting the electric motor started. Let’s change the world…

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Avatar of Jack Collins

by Jack Collins

Syria may Fuel Middle East Discontent. Electric Cars use Domestic Electric Fuel.

June 14, 2013 in EV News, Oil, Politics

Oil prices have risen in recent trade due to concerns over Syria.  Bloomberg reported: “Obama is authorizing the provision of small arms and ammunition to the Syrian opposition under a classified order instructing the Central Intelligence Agency to arrange delivery of the weapons, according to a U.S. official familiar with the decision who asked not to be identified discussing the move.”  Bloomberg continued: “The decision to arm the opposition was prompted by rebel losses rather than by the U.S. confirmation, announced yesterday, that Assad’s forces had used chemical weapons, according to the official familiar with the move.”

Although Syria produces relatively modest quantities of oil and gas, its location is strategic in terms of regional security and prospective energy transit routes. Regional integration in the energy sector is expected to increase as a result ongoing plans for the expansion of the regional oil and gas pipeline networks connecting Syria with neighboring countries Turkey, Iraq, and Iran. Source: EIA, Country Analysis

Although Syria produces relatively modest quantities of oil and gas, its location is strategic in terms of regional security and prospective energy transit routes. Regional integration in the energy sector is expected to increase as a result ongoing plans for the expansion of the regional oil and gas pipeline networks connecting Syria with neighboring countries Turkey, Iraq, and Iran.
Source: EIA, Country Analysis

Syria is not a very big oil producer, but the country is positioned in the heart of the Middle East.  This decision could fuel the flames of discontent in the region.  To say the least, the region has had a lot of discontent throughout history.  The current Syrian civil war has been a bloody street war with numerous innocent victims.  “Political unrest began in Syria in mid-March 2011, and led to a government crackdown on political opposition” (EIA Syria Country Analysis).

WTI oil has risen near $98 a barrel, and Brent is over $106.  The latest EIA weekly inventory report showed that there is plenty of oil in US inventories.  Certainly, the oil data eased the decision by the US government on Syria.  But, the economic security of the United States is never certain due to its reliance on oil imports.  It does not have to be this way.

United States consumers can choose to purchase electric cars that are fueled by domestic electricity.  Electric cars are good for the United States, the world, and the environment.

About EV News Report

EV News Report is a news and information service on electric car news with a focus on the campaigns, events and star leaders shaping the electric car revolution.

Electric vehicles are driving the change to a clean green sustainable future for the United States and the world. Tesla CEO Elon Musk and other EV stars have launched a revolution. At EV News Report, you will see daily updates on the happenings of the industry, including Tesla news, LEAF news, and all the leading EV industry players.

Plug-in to the electric car revolution by creating a free account with EV News Report and join the forums to discuss your ideas with other EV enthusiasts. We’re just getting the electric motor started. Let’s change the world…

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Avatar of Jack Collins

by Jack Collins

Dow Jones Hit 15,000!

May 3, 2013 in Economics, EV News

President Barack Obama and President Enrique Peña Nieto of Mexico share a toast prior to a working dinner at Los Pinos, Mexico City, Mexico, May 2, 2013. (Official White House Photo by Pete Souza) Courtesy of The White House

President Barack Obama and President Enrique Peña Nieto of Mexico share a toast prior to a working dinner at Los Pinos, Mexico City, Mexico, May 2, 2013. (Official White House Photo by Pete Souza)
Courtesy of The White House

The President does have reason to celebrate, because it certainly has been a long hard road back to economic recovery.  Today, the stock market is having a party with the latest job numbers.  Bloomberg reported: “Payrolls expanded by 165,000 workers last month following a revised 138,000 increase in March that was larger than first estimated, Labor Department figures showed today in Washington.  The median forecast of 90 economists surveyed by Bloomberg projected a 140,000 gain.  Revisions to the prior two months’ reports added a total of 114,000 jobs to the employment count in February and March.”

West Texas Intermediate (WTI) oil has run back up to around $96 per barrel, and Brent oil is about $105.  The gap between the two oil markers has narrowed in recent trading.  Cushing Oklahoma oil inventories had dropped last week below 50 million barrels, according to the EIA weekly inventory report, relieving some of the glut that has been holding down the price of WTI.  However, crude oil inventories are elevated in the US.  In general, the oil market remains expensive due to the high expenses of modern extraction technologies and fragile nature of the vast world oil market.

The electric vehicle market should do better with a stronger domestic economy and higher oil prices.  Tesla stock (TSLA) has climbed back above $55 per share (15 minutes delayed quote).  The company has another press event scheduled for 10:30 AM Pacific today.  The major auto stocks have been doing well, speaking broadly, in recent trade as well.  General Motors (GM) is near $32 per share.  Ford (F) is near $14.  Nissan (NSANY) is near $21.  Daimler (DDAIF) is little over $57.

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