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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 importi 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%.

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.”