Check mate, internal combustion engine.
Oil Co.s have had a good run. Global domination & what not. Their exit is now under construction. Soon we will be showing it to them.
& Leilani . . . you rock!!
ICE age will not be over for a long time. As much as we can mock it gasoline and derivates have huge energy density and while ICE is inefficient it is also very cheap to make.
I just wish they would make them a bit more efficient and silent. Just yesterday some punk parked his moped a block away and left it idling for a while, that tiny motor sounded like someone is considering parking an helicopter right next to my apartment. Bangbangbangbangbang... Really annoying.
Thanks Mike! It's fun being a small part of their exit, isn't it? :)
Timo; +1 I've seen a number of electric mopeds and bigger bikes around lately, eerily quiet and smooth. Nice.
Gas is sooo 1900's. Anyone buying a car is foolish if they do not check out the Plug-In vehicles that are available. Over last two years with mine and 26000+ all electric miles. Not a drop of gas. And Tesla cars just keep getting better. It is amazing!
Yeah, the big oil companies are probably a good long-term short. It's probably a safer way to speculate on the rise of electric cars. Short the big oil companies, go long the S&P. I'm not sure what the valuation of XOM would be when the majority of cars sold are electric. I bet in 10 years, the majority of cars sold will be electric. There is a lot of investment going into battery technology because the market is potentially huge. I would bet there is going to be a significant breakthrough in the next 10 years, but even if there isn't, economies of scale and better manufacturing will significantly reduce the cost of batteries.
Don't be too quick to short big oil. As much as we all look forward to all electric transport, remember that the average life of a vehicle is something like 15 years, so even after the sales are all electric it will take a long time to replace the entire fleet.
Then there are all the other uses of oil; home heating, heavy trucks, jet fuel, etc. Do you have a prediction on when Boeing (or Elon) will offer all electric replacement for the 787?
While "green" investments are probably good, XOM will continue to make money (and pay a dividend) for several decades.
You are right about XOM, it is just a valuation issue. I would guess the market isn't pricing in the rise of electric vehicles. Plus, big oil is just so easy to hate; it ruins the environment and supports war and oppression
Shorting is only potentially a good idea as a short-term play against something wobbly like banks in 2008, not for a dividend paying stock and/or a solid company that might have a slow decline unless they diversify. Also, buying put options would be the smarter thing to do, because when shorting a stock you could find yourself owing a stock that rises to infinity, enough to bankrupt anyone no matter how rich you are.
X Deutschland Site Besuchen