Tesla Stock Shall Gain From The Changing Landscape
Tesla Motors Inc (NASDAQ:TSLA) stock has been in the news for all sorts of reasons, be it the SolarCity Corp (NASDAQ:SCTY) acquisition or the victory of President-elect Donald Trump. But here comes a piece of news that is likely to cheer up the fans of Tesla Motors Inc. TSLA stock gained 3.6% in the last trading session and closed at $191.17.
In his interview with The New York Times, President-elect Donald Trump said that he was keeping an open mind on the subject of climate change. This is what he had to say: “I absolutely have an open mind. I will tell you this: Clean air is vitally important. Clean water, crystal clean water is vitally important. Safety is vitally important.”
On being asked if he was not sure whether human activity causes climate change, Trump replied, “I think right now…well, I think there is some connectivity. There is some, something.” (Source: “Donald Trump’s New York Times Interview: Full Transcript,” The New York Times, November 23, 2016.)
Tesla stock has been on quite a ride since Trump won the presidential race. But these statements reflect a clear deviation from the position Donald Trump had held during his election campaign. He was not convinced that climate change was real and there were huge concerns that he might repeal the tax credits and subsidies to the clean energy sector. TSLA stock has been hit due to these speculations.
Tesla believers had another report to look at, which strengthened their optimism surrounding the future of Tesla and Tesla stock. A new forecast by the International Energy Agency (IEA) indicates that worldwide consumption of gasoline has peaked as more efficient cars and new electric vehicles by companies like Tesla Motors Inc halt demand growth in the next 25 years.
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“Electric cars are happening,” said IEA Executive Director Fatih Birol in an interview. He added that their number will rise from little more than a million last year to more than 150 million by 2040. (Source: “Tesla Shock Means Global Gasoline Demand Has All But Peaked,” Bloomberg, November 22, 2016.)
However, a veteran oil-market analyst, Philip Verleger, said that the IEA’s outlook is one of the more optimistic outcomes for the global industry. According to Verleger, oil consumption may begin dropping not in 2030, but probably in 2020.
This is a good indicator of things to come and what the future may hold for Tesla Motors Inc and TSLA stock. Although there will be high competition, Tesla is likely to gain from its strong lead in the segment, and Tesla stock will remain in the limelight for a long time.