Tesla and Oil Transition Theme
August 14, 2013 in Electric Vehicles, EV News, Oil, Tesla
Hyperloop design
Image courtesy of Tesla
The EV community is amped up for National Plug In Day. Tesla tweeted: “More than 60 cities have signed up for the 3rd annual National #PlugInDay on Sept 28-29. Join in on #plugin: http://pluginday.org/events.php.” Certainly, Hyperloop will be one topic of discussion among many, so if you like EVs, you should come join the fun.
Tesla stock (TSLA) dropped sharply today, exaggerating the down move in the stock market. The shares closed at $139.36, off 4.17%. Rising interest rate concerns are causing unease in the overall market. The 10 year Treasury yield has remained around 2.7%, but this is unlikely to last if the Federal Reserve significantly removes its stimulus.
The oil market will likely put a lid on interest rates in the future. The US cannot grow without cheap energy, so economic growth will be constrained until the US can adequately transition to the new electric era. Fortunately, the world gladly accepts US Dollars for oil. Unfortunately, for India, the world does not clamor for the Rupee, which may make the Rupee a major casualty in the currency markets.
WTI oil is currently trading over $107 per barrel, and Brent is over $110. The Middle East has been heating up again with conflicts scattered across the region. Bahrain has the latest conflict. Reuters reported: “Bahraini police fired teargas and birdshot to disperse scattered protests across the country on Wednesday, as Shi’ite Muslims responded to a call by online activists for pro-democracy demonstrations.” Bahrain is a tiny oil producer, but this conflict is cause for regional concern.
Hopefully, with the Arab Spring in mind, regional leaders will choose to advance democracy quickly and build a more sustainable economic model. Norway is a country rich in oil, but it also has a well diversified economy and highly stable society. Democracy, not oil, offers the greatest riches for the people of the Middle East.
